MANILA, Philippines - Shares of Solaire owner Bloomberry Resorts fell more than 7 percent on Thursday morning, dragging the Philippine Stock Exchange index lower.
As of 12 noon, Bloomberry shares suffered a 7.67 percent decline to P11.32.
This came after Bloomberry disclosed that the arbitration tribunal in Singapore has allowed its erstwhile operator Global Gaming Philippines LLC (GGAM) to sell 921.18 million of its shares. The order of the tribunal is dated December 9, 2014.
"(The tribunal) ordered the status quo ante as of January 15, 2014 and revoked the injunction and attachment orders of the Regional Trial Court and allows GGAM to freely deal with, including sell, the shares," the company said.
In September 2013, Bloomberry, owned by ports tycoon Enrique Razon, terminated its management services agreement with GGAM over what it claimed was the latter's failure to manage Solaire properly.
In January 2014, GGAM sold its shares in Bloomberry, which are the subject of the counterclaim of BRHI and Sureste against GGAM in arbitration proceedings.
However, Bloomberry got an order from a Philippine court preventing GGAM from unloading the shares.
Sought for comment, Bloomberry chief financial officer Estella Occena downplayed the ruling, noting it has no jurisdiction over Philippine court.
"The (Singaporean) tribunal has no jurisdiction over Philippine court. Still a long process for injunction to be lifted... The ruling is not a judgment in favor of GGAM. The arbitration proceedings still ongoing," Occena said.
Also, the tribunal denied GGAM's request to be declared "full legal and beneficial owner of the shares free of any claims, liens or encumbrances by BRHI, SPI and Prime Metroline Holdings Inc. (PMHI)," as well as its request to prevent BRHI, SPI and PMHI and their affiliates from "taking any actions that would interfere with or prevent any sale of the shares."
"The Tribunal emphasized that it makes no declaration as to ownership of the Shares. One reason for the Order of the Tribunal is its finding that PMHI, the original owner of the Shares, is not a party to the arbitration," Bloomberry said.