Bloomberry ordered to pay damages to former Solaire management firm

MANILA, Philippines — Bloomberry Resorts Corp. has been ordered to pay damages for the termination of the management agreement between its subsidiaries and GGAM.

In a disclosure yesterday, Bloomberry said its lawyers have received the final remedies award of the arbitration tribunal in the case filed by GGAM Philippines and GGAM Netherlands against Sureste Properties Inc. and Bloomberry Resorts and Hotels Inc.

The final order awarded less than half of the damages sought by claimants.

Bloomberry was directed to pay the claimants $85.2 million as damages for lost management fees, $391,224 as pre-termination fees and expense to claimants and P10.2 billion for GGAM’s shares in Bloomberry in exchange for claimants turning over the shares after the payment.

If respondents do not pay for the shares, GGAM may sell the shares in the market and respondents are directed to take all steps necessary to facilitate the sale.

Respondents have also been ordered to pay the claimants $15 million.

Bloomberry said the arbitration award is not self-executing and must be confirmed by a court for it to be enforceable and to have the legal effect of a judgment.

“Thus, counsel for respondents has advised that, as a matter of Philippine law, this final remedies award of the arbitration tribunal may be enforced in the Philippines only through an order of a Philippine court of proper jurisdiction, after appropriate proceedings taking into account applicable Philippine law and public policy,” Bloomberry said.

Bloomberry said the final remedies award is fundamentally flawed in numerous respects.

It is considering its options in Singapore and elsewhere with respect to the final award on remedies.

“Relatedly, respondents have filed a petition with Singapore courts to vacate the prior partial award on liability of the arbitration tribunal because the award was procured by fraud and is in violation of public policy,” Bloomberry said.