MANILA, Philippines - A Makati Regional Trial Court has temporarily prevented Global Gaming Philippines LLC (GGAM) from selling its shares in Enrique Razon's Bloomberry Resorts Corp.
On Monday, the court granted Bloomberry's petition for a temporary order of protection for 20 days to prevent GGAM from selling or transferring its 921.18 million shares in the Solaire operator.
GGAM was not immediately available for comment.
The Las Vegas-based GGAM had sold its 8.7% stake in Bloomberry via a block sale for P7.42 billion on Wednesday.
However, Bloomberry, Sureste Properties Inc. and Prime Metroline Holdings, Inc. sought to block the sale. Last Friday, they filed an Urgent Petition for Issuance of Interim Measures of Protection with Very Urgent Prayer for the Issuance of an Ex-Parte Temporary Order of Protection against GGAM, Deutsche Regis Partners Inc., PSE, and John Does.
"These shares are subject to a counterclaim by BRHI and SPI in the arbitration case and if the sale of the shares is completed, the petitioners will not be able to get back the shares and they will not be able to satisfy any judgement for damages that they may be able to obtain against GGAM in their ongoing arbitration proceedings in the termination of their MSA (management services agreement) because of GGAM's uncured material breach of the MSA," Bloomberry earlier said.
However, GGAM said Bloomberry's allegations are "wrong".
“We purchased and paid for our stock in Bloomberry entirely appropriately, and we own that stock. Clearly, we are entitled to the full rights of any shareholder, including the right to sell it. In every way, GGAM has acted properly and the allegations by Bloomberry are simply wrong. We expect its claim to be denied," a company spokesperson from GGAM said regarding the petition filed by Bloomberry.
Last September, Bloomberry terminated the management services agreement with GGAM over the latter's alleged failure to manage Solaire.
GGAM said Bloomberry's allegations have no legal basis and has filed for arbitration in Singapore to resolve the dispute.