February 10, 2014

Court extends TRO on BLOOM shares sale

BusinessWorld today reported that the units of Bloomberry Resorts Corp were able to secure a 10-day extension of a court temporary restraining order on the sale and placement of BLOOM shares held by Global Gaming Philippines LLL (GGAM). The TRO expired yesterday.

To recall, BLOOM requested for the TRO on the sale of such shares (equivalent to 8.7% of BLOOM total shares) which it argued are subject to its counterclaims in the ongoing arbitration proceedings between the company’s units and GGAM. Meanwhile, BLOOM disclosed today that its units were able to execute a corporate note facility deal worth P11.425b with the BDO group to partially bankroll the expansion of Phase 1a of its entertainment complex.

Our Take: We expect the ongoing court case and arbitration proceedings to continue weighing on investor sentiment on BLOOM shares. In the meantime, this could boost interest on the other gaming stocks like Travellers International (RWM) which operates the Resorts World Manila as well as Melco Crown Philippines (MCP) and Belle Corp (BEL) which are set to open City of Dreams Manila in 2H13. – WealthSec