Global Gaming Philippines, LLC, a company formed by former Las Vegas Sands executives, has filed a complaint against Enrique K. Razon, Jr. (pictured), seeking enforcement of a $296m arbitration award against the Philippine billionaire.
The complaint, which was filed in the US District Court for the Southern District of New York, notes the award came from a dispute regarding GGAM’s management of the Solaire Resort and Casino in the Philippines.
GGAM is an affiliate of Global Gaming Asset Management, LLC, a casino operator and gaming management company.
In September 2011, GGAM executed a management services agreement with Razon and his companies, under which GGAM was to provide management and technical services in the development and construction of Solaire, and manage and supervise the operation of Solaire for 10 years.
Per the complaint, on 12 September, 2013, Razon sent GGAM a formal notice of termination of the MSA. In the arbitration, GGAM requested the arbitral tribunal find that the debtor defendants materially breached the MSA through the termination, and award GGAM damages for those breaches, including interest and costs.
In the final award issued on 27 September, 2019, the arbitral tribunal found the debtor defendants wrongfully terminated the MSA, that GGAM is the rightful owner of the option shares, GGAM is entitled to sell the option shares, and the debtor defendants actively and unlawfully impeded GGAM’s right to sell the option shares.
According to the new complaint, Razon has refused to comply with the arbitration order.
The complaint alleges: “Razon and his operatives have formed a vast network of shell companies in the United States designed to conceal Razon’s ownership of assets within this country’s borders and, on information and belief, have diverted funds and other assets from the Philippine members of his enterprise, including the debtor defendants, to fund such US entities for the sole personal benefit of Razon and his family.”
Razon, the complaint says, had a particular fondness for New York City, and “invested tens of millions of dollars to acquire real estate in and around New York City, including a penthouse apartment at The Plaza in Manhattan, where he and his family principally reside when not in the Philippines.”
The penthouse, the complaint alleges, was Steve Wynn’s former residence at the Plaza, purchased for $24.4m.
