- Casino
- By State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Georgia
- Florida
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Massachusetts
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
- By State
- Slots
- Poker
- Sports
- Esports
US SPAC Firm Starts Legal Action against Okada Manila
26 Capital Acquisition Corp, a Special Purpose Acquisition Company (SPAC) based in the United States, has taken legal action against the operating entities of Okada Manila for allegedly breaching their obligations under the original merger agreement
The lawsuit was filed on February 2 in the Delaware Court of Chancery and calls for the prompt consummation of the merger, which was initially agreed upon in October 2021.
Universal Entertainment to Review Lawsuit Amidst Merger Extension
The ultimate parent company of Okada Manila, Japan’s Universal Entertainment Corp, has stated that they will carefully review the details of the lawsuit and respond appropriately.
The proposed merger would result in UE Resorts International Inc (UERI) becoming a publicly traded company on the NASDAQ, with the Hong Kong-based company that owns 99.9% of Okada Manila retaining a majority of 80% of the share capital. The total equity value of the newly formed SPAC company was estimated to be $2.5 billion according to the original merger agreement.
In October 2022, 26 Capital and UERI announced a 12-month extension to the deadline for the merger, pushing it from October 1, 2022, to October 1, 2023. This was done to ensure that both parties have enough time to properly deal with any issues that may arise during the merger process.
The filing of this lawsuit is a significant development in the ongoing merger negotiations and it remains to be seen how the Delaware Court of Chancery will respond. However, with the dedication of both parties to complete the merger, a resolution will likely be reached in the near future.
Delay Caused by Okada Manila Forceful Occupation
The extension to the deadline for the merger was put in place after a group representing the deposed founder of Okada Manila, Kazuo Okada, forcibly took control of the property.
On May 31, 2022, Kazuo Okada made his way onto the venue accompanied by 50 police officers and armed with a status quo ante order from the Philippines Supreme Court. According to Okada and his entourage, the order mandated the reinstatement of the casino resort’s board of directors to its 2017 composition, which included Okada as a member. Thus, the group ousted the Tiger Resort, Leisure and Entertainment Inc (TRLEI) board and declared themselves as the company’s executives.
TRLEI’s primary owner, Tiger Resort Asia Limited (TRAL), which holds a 99% stake in the company, promptly challenged Okada’s actions by filing a motion for clarification. Meanwhile, Universal Entertainment, the parent company of TRAL, took action as well. The CEO, Jun Fujimoto, asked the Supreme Court to cancel the status quo ante order.
Eventually, PAGCOR was compelled to issue a directive for Okada and his associates to surrender the Okada Manila Casino Resort to its rightful owners. TRLEI regained control on September 2, 2022. In the end, Kazuo Okada was arrested on charges of grave coercion and remains in detention by the Philippine authorities.
Related Topics:
Silvia has dabbled in all sorts of writing – from content writing for social media to movie scripts. She has a Bachelor's in Screenwriting and experience in marketing and producing documentary films. With her background as a customer support agent within the gambling industry, she brings valuable insight to the Gambling News writers’ team.
Previous Article
Legal
February 8, 2023
Fertitta Skeptical about Texas Chances to Legalize Casino Expansion, Sports Gambling
Must Read
Legal
February 11, 2025
Latvia Faces €7.3M Compensation Claim for COVID-19 Gambling Ban
Legal
February 12, 2025
Mount Airy Casino Resort Faces $5M Legal Claim
More Articles
Legal
February 17, 2025
Ex-Entain Executives Seek Legal Action over Privileged Information
Legal
February 12, 2025
WinView Files New Patent Lawsuit Against FanDuel and DraftKings
Industry
February 10, 2025
Gambling Firms Accused of Illegally Sharing User Data with Facebook
Esports
February 10, 2025
League of Legends Developer Sued in Belgium over Loot Boxes
Legal
February 10, 2025
Las Vegas Police Apprehend 3 Suspected for the Power Outage Last Monday
Legal
February 10, 2025
High 5 Games Ordered to Pay $25M to Players in Washington
Legal
February 10, 2025
ASIC’s Trial Against Former Star Entertainment Leaders Commences
Business
February 5, 2025
BlueBet Acquires TopSport Via Binding Asset Agreement
Legal
February 5, 2025
Minnesota Man Avoids Prison in Proxy Gaming Case
Legal
February 4, 2025
Full House Prevails in Waukegan Casino Lawsuit
Legal
February 3, 2025
Wang Shuiming Arrested in Montenegro for Betting Fraud