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RTC orders stay on canceled Okada deal

Century Properties Group, Inc. said it has secured an order from the Makati Regional Trial Court (RTC) prohibiting companies associated with Japanese casino operator Kazuo Okada from dealing with any other party for the development of a joint commercial and residential project in Parañaque City.

In a disclosure on Tuesday, the company said the July 25 court ruling also barred the Okada Group from giving effect to its unilateral termination of a 2013 agreement with Century.

It also prohibited the Japanese conglomerate from “committing any acts that will render the agreements or any portion thereof unenforceable or ineffective.”

The decision granted a motion for reconsideration filed by Century on May 30, after the trial court rejected an earlier petition questioning the irregularities in agreement deals with the Okada Group, referring to companies Eagle I Landholdings, Inc.; Eagle II Holding Company, Inc.; and Brontia Ltd.

The legal dispute started on March 31 when Century challenged the validity of the termination of an October 2013 deal for a casino-related project slated for construction at the government-owned Bagong Nayong Pilipino Entertainment City in Parañaque City.

Century initiated that day a petition (Civil Case No. 14-359) seeking interim measures of protection — referring to a writ of a preliminary injunction, writ of preliminary mandatory injunction, writ of preliminary attachment/garnishment and ex-parte 20-day temporary order of protection, against the Okada group.

The petition, however, was denied on May 13. It then prompted Century to file a motion for reconsideration.

Century had signed a deal with Eagle I, a Philippine affiliate of Mr. Okada’s Universal Entertainment Corp., for the development of five hectares of land within the 44-hectare site called Manila Bay Resorts.

Century also signed an investment agreement whereby the Filipino company would be issued with 432 million preferred shares or 36% of Eagle I’s capital stock.

The deals came with exclusivity rights for Century to build luxury and residential properties on the five-hectare land.

Century said it had received from the Okada Group a notice of termination on March 26, with the Japanese side contending that the agreement was “premature, unfounded, and lacks legal and contractual basis.”

Source: Businessworld Online | July 29, 2014


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