Century obtains court protection against Okada group

Screengrab from century-properties.com

MANILA, Philippines—Century Properties Group Inc. has obtained a 20-day court “protection” against the group of Japanese gaming magnate Kazuo Okada, preventing the latter from terminating a property partnership for “Manila Bay Resorts” and negotiating with new and alternative partners.

In a disclosure to the Philippine Stock Exchange on Wednesday, CPG said the Regional Trial Court of Makati, in an order dated April 1, granted its petition for “temporary order of protection” against the Okada group.

CPG went to court after Okada’s group terminated a deal which would have made CPG part owner of the holding firm that would legally own  a 44-hectare estate within Pagcor Entertainment City where Okada’s gaming complex “Manila Bay Resorts” is to rise. Under the aborted deal, CPG was also supposed to build luxury residential and retail properties with over 300,000 square meters of gross floor area on a five-hectare site within the complex.

Respondents on the Okada side, namely  Eagle I Landholdings Inc., Eagle II Holdco., Inc. and Brontia Ltd., were ordered to:

• Produce all documents and information that CPG needs to complete its due diligence; extend the due diligence period;
• Refrain from dealing with any other party for the development of the commercial and residential portion of the project;
• Extend the period within which to complete the closing, otherwise known as the “sunset date” under the investment agreement;
• Refrain from giving effect to the termination of the investment agreement, subscription agreement and memorandum of agreement and/or from committing any acts that will render these agreements or any portion thereof unenforceable or ineffective or render any part of the dispute moot and academic; and
• Refrain from dealing with any party with respect to any sale, disposition or original issuance of any class of the shares of stock of Eagle I and refrain from any sale, disposition or original issuance of any class of the shares of stock of Eagle I.

On Wednesday, prior to CPG’s disclosure that it had obtained the court order, the Okada group said project construction was progressing according to schedule. Currently, the construction includes the hotel tower and casino floors.

The Japanese group said it saw “mass hiring” of operational staff in line with the planned opening of the entertainment complex in the third quarter of 2015. “We project employment will reach 15,000 both for direct and indirect employees, once our project is finished,” the group said.