Bloomberry Ends Hostilities with GGAM via $300M Settlement

Bloomberry Resorts Group, one of the Philippines’ gambling leaders, has at last settled its conflict with Global Gaming Asset Management (GGAM), agreeing to buy its GGAM-owned shares back in a $300 million deal. This would effectively mark the end of a lengthy court battle.

The issue stems from Bloomberry’s decision to cancel its contract with GGAM after the opening of the former company’s Solaire Resort & Casino property. Prior to that, GGAM had signed a five-year contract to manage Solaire and, in 2011, acquired an 8.7% stake in the project.

Two years later, the resort welcomed its first guests and proved to be an instant success. Because of that, the Philippine gambling company decided to cancel the contract with GGAM, to the latter company’s dismay.

GGAM alleged that the canceling of the contract was unlawful and accused Bloomberry of keeping tens of millions of dollars in fees and other considerations that it owed to GGAM. In addition, the American company alleged that Enrique Razon, the owner of Bloomberry Resorts Group, had used his personal relationships in the Philippine stock market to prevent GGAM from selling its interest in Solaire.

The case, which continued for over a decade, has finally been settled.

The Two Parties Have Reached an Agreement after 10+ Years

In 2019, a Singapore-based arbitration panel ruled that Bloomberry must pay $296 million to GGAM as compensation. This ruling was upheld by Singapore’s highest court in 2021. However, Bloomberry insisted that the award should be enforced through an order of a Philippine court of proper jurisdiction.

That same year, the case moved to New York where GGAM sued Bloomberry, asking local authorities to enforce the Singapore tribunal’s decision against Razon’s assets in the United States. According to GGAM’s claims, the Philippine billionaire’s assets were hidden through a network of shell companies.

Bloomberry tried to dismiss the case in 2023 but failed to do so. As a result, the company eventually agreed to settle all outstanding conflicts with GGAM.

Under the $300 million settlement, the Philippine operator will buy Global Gaming’s 921,184,056 Bloomberry shares for $300 million through the Philippine Stock Exchange. This transaction would mark the end of all hostilities between the two companies.