Bloomberry Settles Decade-Old Contract Spat for $300M

Bloomberry Settles Decade-Old Contract Spat for $300M

A between the Philippines’ and Las Vegas-based Global Gaming Asset Management (GGAM) was settled Tuesday after more than a decade of bad blood.

Enrique Razon, the Philippines’ third-richest man and chairman of the Bloomberry Resorts Group, above. His company was accused by GGAM of illegally violating a contract related to the management of the Solaire casino in Metro Manila. (Image: Reuters)

Bloomberry announced in a regulatory filing Tuesday it would buy Global Gaming’s 921.2 million Bloomberry shares for US$300 million via a block sale on the Philippine Stock Exchange.

Bloomberry is owned by billionaire Enrique Razon, the Philippines’ third-richest man. Its properties are the Solaire Casino Resort in Entertainment City, Metro Manila, and the in Jeju Island, South Korea.

GGAM is a casino development and gaming management company headed by former LVS Corp COO Bill Weidner. It has experience running some of the world’s biggest casino resorts.

Victim of Success

The spat dates back to 2011, when GGAM signed a five-year contract to manage Solaire on its completion. At the same time, GGAM acquired an 8.7% interest in the project.

Solaire opened in 2013 and was an immediate success. It began turning a profit within months. Six months later, Bloomberry wriggled out of its contract with GGAM unlawfully, according to the American company. Bloomberry also “ultimately withheld tens of millions of dollars in fees and other consideration owed to GGAM,” according to court filings by GGAM’s lawyers.

GGAM also claimed Razon “leveraged his personal relationships in the Philippine stock market to unlawfully prevent GGAM from selling its equity interest in the project.”

In 2019, an arbitration panel in Singapore to pay $296 million to GGAM as compensation for wrongful termination, lost management fees, attorneys’ fees, and court costs. In 2021, Singapore’s highest court upheld the award.

But Bloomberry argued the award could only be enforced in the Philippines “through an order of a Philippine court of proper jurisdiction.”

Case Moves to New York

In 2021, GGAM sued Bloomberry in New York, asking the court to enforce the Singapore tribunal’s decision against Razon’s U.S. assets. The lawsuit claimed these were concealed through a vast network of shell companies. Those included energy and mineral holdings in the Appalachian Basin acquired from T. Boone Pickens for $150 million, Steve Wynn’s former residence at the Plaza purchased for $24.4 million, and various substantial real-estate assets in New York.

The agreement to settle came after the New York court declined a motion last year by Bloomberry to dismiss the case.  The settlement deal puts an end to all pending cases between the two parties, including those in Nevada, the Philippines, and Singapore, Bloomberry said Tuesday.