Century Properties Group Incorporated announced Thursday that it has filed a notice of arbitration against Okada Group over a failed partnership for a $2-billion integrated resort and casino project in Entertainment City.
In a disclosure to the Philippine Stock Exchange, CPGI said that it filed a notice of arbitration dated April 17, 2015 before the Hong Kong International Arbitration.
CPGI also mentioned that it was notified by its legal counsel on Tuesday that the Okada group’s bid to terminate their partnership has gained approval from the Court of Appeals, setting aside the Makati trial court ruling.
“CPGI’s counsels are now studying the legal options the company will take to this order,” CPGI said.
In October 2013, CPGI and the Okada Group struck an agreement to co-develop a five-hectare luxury commercial-residential property within the Entertainment City complex and an investment agreement whereby CPGI would be issued with 432 million preferred shares or 36% of Eagle I’s capital stock.
However, on March 26, 2014, the Okada Group terminated the investment agreement.
CPGI questioned the termination of the agreement, saying it was “premature, unfounded and lacks legal and contractual basis.”
The Makati Regional Trial Court Branch 66 in an order dated July 25, 2014, stopped the Okada group from giving effect to its unilateral termination of a 2013 agreement with Century Properties.
The Makati court also prohibited companies associated with Mr. Okada from dealing with any other party for the development of a joint commercial and residential project in Parañaque City.
After the Makati court rulings CPGI expressed its willingness to resume negotiations with Okada group saying that “the plan is for us to discuss among ourselves out of court and take it from there.”
Despite the legal issues, Manila Bay Resorts is still expected to open by the third quarter of 2015.