Century Properties Group Inc. said Tuesday it obtained a court order stopping the group of Japanese billionaire Kazuo Okada from terminating their investment deal to develop the $2-billion Manila Bay Resorts in Parañaque City.
Century Properties said the Makati regional trial court issued an injunction on July 25, prohibiting the Okada group from terminating the agreements with Century Properties.
The court reversed an earlier ruling issued in May that denied the injunctive relief sought by Century Properties, after the company filed for a motion for reconsideration.
The latest court order also stopped the Okada group from selling shares of stock of Eagle I and dealing with any other party for the development of the commercial and residential project as contained in agreements with Century Properties.
Century Properties in March filed a petition for interim measure against Eagle I for terminating the agreement, which would make Century Properties a 36-percent part-owner of the firm that owns the Manila Bay Resorts.
Century Properties also signed up with exclusivity rights to build luxury residential and retail properties on a five-hectare portion of the complex.
Another privately held First Paramount Holdings was supposed to acquire 24 percent of the firm.
First Paramount, however, backed out from the deal, prompting the Okada group to terminate the investment agreement with Century Properties.
Century Properties, however, said the withdrawal of First Paramount should not have rendered the deal ineffective, as the provisions under the investment agreement provided alternative measures to exhaust all reasonable means for the said agreement to come to a close.
It said such measures included negotiating an alternative structure that would preserve the commercial terms of the agreement and replacing First Paramount with another qualified Filipino company to ensure the subscription of the preferred shares.
Century Properties said despite its efforts to bring the investment transaction to closing, the Okada Group decided on ‘frustrated closing’ and did not cooperate with the process with respect to providing CPG its due diligence materials.
“Century immediately conducted the required due diligence in its desire to close the deal for the mutual benefit of both parties, but it could not complete the said task due to the refusal of the Okada group and its counsel to provide Century reasonable access to due diligence materials,” Century Properties said.
The property developer said the Okada group had no legal standing to call for the termination of the agreement.
Source: Manila Standard Today | July 30, 2014