In January 2006 the opening of El Centro multi-function centre, owned and managed by Hong Kong-based Legend International Resorts Ltd (LIRL), at the Philippine’s Subic Bay Freeport was described as creating a legacy as the largest and most modern facility of its kind in the country. By July that year a Hong Kong court had put LIRL under liquidation and appointed an administrator. At the time the CEO, Khoo Boo Boon, was reported to be obstructing the court order and denying access to company properties Legenda Suites, Grand Seasons Hotel and Legenda Hotel & Casino.
LIRL, a Pagcor-licence casino operator, had been operating in Subic Bay special economic zone since the 1990s. The Subic Bay Metropolitan Authority (SBMA) and the Philippine Amusement and Gaming Corp (Pagcor) in 2006 agreed a rehabilitation plan for the company, which was said to be operating at a loss and owing some $120 million to Morgan Stanley Emerging Markets and Avenue Capital plus $20.7 million to the government-owned Pagcor. Last Friday the SBMA shut down and barricaded LIRL properties for non-payment of arrears.
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Since 2006 some 200 casino employees have been employed on a rotation basis with salaries and benefits suspended. Most of LIRL’s 700 employees who lost their jobs filed an illegal dismissal case in 2007 with the Philippine National Labor Relations Commission. The ex-casino staff and the remaining 200 are now appealing for the payment of back wages and payments to be made before creditors divide up the company’s remaining assets. SBMA has still to apply to the courts to take control of LIRL property.
(E-06.30.09)
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