Bloomberry Resorts Corp. said the Singapore High Court has ruled to dismiss its group’s appeal on the Singapore Arbitration Court’s decision to finally award Bloomberry shares to Global Gaming Philippines LLC and GGAM Netherlands BV.
This follows after the Arbitration Court ruled in Sept. 20, 2016, that the termination of the management services agreement (MSA) between Bloombery’s units Bloomberry Resorts and Hotels Inc. (BRHI) and Sureste Properties Inc. (SPI) with GGAM was wrongful, and that the 921.18 million Bloomberry shares covered by the agreement automatically goes to the latter for its disposal.
The company initially filed an appeal on the case to which the Arbitration Court issued a final award in September last year. SPI and BRHI elevated the case to the Singapore High Court which ruled against them in January. Bloomberry appealed the ruling, resulting in the current decision.
“The Singapore High Court ruled that the ‘Constructive Remedy’, which requires SPI and BRHI to either (1) pay for the BRC shares held by GGAM in exchange for the BRC shares, or (2) take steps to facilitate GGAM’s sale of the BRC shares, was not outside the scope of the parties’ arbitration agreement,” Bloomberry said.
“The Singapore High Court also rejected the challenges based on the FCPA Findings (referring to the findings of the US Department of Justice and the US Securities and Exchange Commission regarding conduct by two of GGAM’s four executives during their tenure at Las Vegas Sands that violated the US Foreign Corrupt Practices Act) and GGAM’s fraudulent concealment of evidence during the Arbitration. The Singapore High Court likewise denied the argument that GGAM Netherlands, to which the MSA was assigned, was a sham entity established solely to evade US and Philippine taxes, because the Arbitration Tribunal rejected the same argument, and thus, the High Court found that the grant of damages to GGAM Netherlands is not contrary to Singapore public policy,” it added.