An arbitration tribunal in Singapore has ruled that units of Bloomberry Resorts Corporation were wrong to terminate their partnership with Las Vegas-based Global Gaming Philippines LLC (GGAM).
In Bloomberry’s filing to the Philippines Stock Exchange on Thursday, the operator said that the arbitration tribunal issued a partial award to GGAM, which would allow it to claim ownership of an 8.7 percent stake in the company.
The tribunal also declared that GGAM did not mislead Bloomberry into signing the Management Services Agreement (MSA), and was terminated unjustly.
The tribunal however, rejected GGAM’s claims that it was defamed by the publicized statements of Bloomberry’s chairman.
In 2014, GGAM tried to sell its 921,184,056 shares in Bloomberry to institutional investors.
However, managed to secure temporary restraining order from the Makati Regional Trial Court that stopped Global Gaming from selling its stake in company.
The court said there was no basis for Bloomberry to challenge GGAM’s title to the 921,184,056 Bloomberry shares “because the grounds for termination were not substantial and fundamental, thus GGAM can exercise its rights in relation to those shares, including the right to sell them.”
According to local media, Bloomberry in April 2012 signed a five-year management service agreement (MSA) with Global Gaming.
However, in the following year, Bloomberry terminated its management agreement, citing a “material breach” of contract, saying that GGAM “failed to perform its obligations and deliverables under the MSA.”
The move prompted GGAM to file an arbitration case against Bloomberry in Singapore.