MANILA, Philippines—Bloomberry Resorts Corp., developer and operator of Solaire Resort & Casino, has terminated its management contract with Global Gaming Philippines LLC (GGAM), citing the latter’s breach of their management services agreement.
As a consequence, Bloomberry has sacked Solaire chief operating officer Michael French, the official representative of GGAM.
“GGAM has not spent any material time in attending to the management of Solaire and has failed to perform its obligations and deliverables under the MSA,” Bloomberry told the Philippine Stock Exchange.
“However, many members of the existing management team are very capable and will continue to manage Solaire effectively with GGAM and its representative,” the company said.
“Bloomberry Resorts Corporation’s assertions regarding GGAM’s performance of its obligations under the Management Services Agreement have no factual or legal validity,” GGAM said in an emailed statement to INQUIRER.net.
“Bloomberry has materially breached that agreement and GGAM is pursuing its rights under that contract in arbitration in Singapore,” it said.
GGAM is a unit of a Las Vegas-based casino investor, developer and manager of casino properties which also operates in Macau and Singapore.
Bloomberry, which is led by businessman Enrique Razon Jr., turned profitable in the second quarter as gaming revenues gained ground. It chalked up a net profit of P22.7 million during the quarter, a reversal of the P126.9 million net loss in the same period last year. It is the first to open a gaming and entertainment hub at Pagcor Entertainment City.