GGAM sues Bloomberry Resorts Corporation owner for $296.6m
Global Gaming Asset Management (GGAM) has announced the filing of a lawsuit worth $296.6 million (£216.3 million) against Enrique Razon, the owner of Bloomberry Resorts Corporation and billionaire. The company is now seeking the amount for damages caused by the ending of a deal that was made for the management of the Solaire Resort and Casino in the Philippines.
The lawsuit mentions that Razon persuaded Global Gaming Asset Management to offer “substantial assistance” in the evolvement of the Solaire Resort and Casino. GGAM is a joint venture that works on casino and resort management.
The Solaire ultimately ended up becoming the Philippines’ very first integrated resort, as GGAM claimed that it had put in tens of millions of dollars into its development. It also went on to say that Razon wanted to utilize GGAM’s technical, management and planning services. The deal’s conditions stated that GGAM had the right to acquire 10% of equity in Solaire, and could possibly obtain a close deal in any other Bloomberry casino projects.
GGAM stated that its responsibilities with the project included the recruitment of a management team, management of customer databases and the negotiation of agreements and contracts. Despite that, six months after the launch of the casino, Razon allegedly ended the agreement and kept the fees to the project.
The filing also claimed:
“Pouring salt on GGAM’s wound, Razon also leveraged his personal relationships in the Philippine stock market to unlawfully prevent GGAM from selling its equity interest in the project – an obstructive effort Razon continues to this day.”
The amount of $296.6 million was brought up from an arbitral tribunal that initially met back in 2018. It ended up deciding that the value of the option shares stood at $196 million, and $85.2 million were to be paid to cover lost management fees, $15 million in legal costs and $391,000 in fees pre-termination.
Furthermore, GGAM claims that since Razon possesses control over Bloomberry, the lawsuit can be filed against the owner personally and against the business. Razon also owns International Container Terminal Services, which is a port management service, and is currently the second richest individual in the country.