Okada Manila Ousted Ownership Group Seeks Financial Disclosures
Posted on: August 5, 2022, 10:22h.
Last updated on: August 5, 2022, 10:46h.
The Okada Manila ownership quarrel shows no signs of resolving anytime soon. The latest is that the ousted board of Tiger Resort, Leisure & Entertainment, Inc. (TRLEI), which is now operating under the identity Tiger Resort Asia, Limited (TRAL), is demanding that the current operators of the company’s flagship Okada Manila casino resort immediately disclose internal financial documents.
TRLEI controls 99% of the ownership shares in Okada Manila, a $2.4 billion integrated resort in the Philippines. The Manila casino was the site of a raid in May led by billionaire Kazuo Okada. He was the founder and chair of TRLEI before he was forcibly removed from the organization in 2017. His ousting was based on allegations that he was mismanaging corporate finances.
Okada had been seeking to regain control of the Manila resort. The May raid came after the Philippines Supreme Court issued a Status Quo Ante Order instructing TRLEI to return its board to its 2017 composition, when Okada was still in charge.
The TRAL group contends that the court order did not grant Okada the right to take over control of Okada Manila and forcibly oust its corporate executives. But the Kazuo-led group has maintained governance over TRLEI and the casino since the May ambush.
With TRLEI’s governance in dispute, as the Kazuo group and TRAL both claim rightful ownership, Philippines banks have frozen the casino operator’s accounts and financial assets. That has resulted in allegations that the casino’s current management is taking money directly out of the cashier cage to pay its employees and cover other overhead.
TRAL today issued a letter addressed to the Kazuo group demanding that it begin disclosing financial reports of the casino’s day-to-day operations.
You are hereby reminded that the inspection of corporate documents is a matter of right on the part of a shareholder and are further sternly warned that denial of such right constitutes a crime under the Revised Corporation Code,” the TRAL letter demanded of TRLEI.
The TRAL group is the ousted TRLEI board that includes Okada’s own adult-aged children Tomohiro and Takako Okada. The TRAL organization claims a 99% ownership position of TRLEI and Okada Manila.
Ousted Group Seeks Resolution
TRAL is seeking the timely release of monthly management reports of Okada Manila from the Kazuo-led group. The ousted board argues that since it is the largest shareholder of the casino, the receipt of such filings, as well as updates on management and employee changes, are warranted.
The Kazuo group said last week that gaming has been strong since it assumed control of Okada Manila. The group claimed that gross gaming revenue jumped almost 38% during the second quarter ending June 30, with the casino winning about $149.3 million.
TRAL has also ordered that TRLEI turn over surveillance video of the casino since the May takeover. The former management is additionally calling on the Philippines high court to settle the intra-corporate dispute.
“We are confident that the Philippine Supreme Court will agree with the correctness of our case and resolve this intra-corporate dispute once and for all,” the TRAL release concluded.