Khoo said he will not step down from his post because the Philippine court does not recognize the Hong Kong court ruling. "If we allow them to take over, we will be held liable because we will be making a mockery of the legal due process. I will not act until the Olongapo Regional Trial Court acts on LIRL’s petition for suspension of debt payments and rehabilitation."
Appointed as liquidator of Subic’s Legend Hotel is Alvarez & Marsal, a leading global professional services firm specializing in operational and financial turnaround management. Alvarez & Marsal is tasked with developing a plan to bring Legend Hotel back to profitability and save the jobs of more than 1,500 empoloyees.
The Hong Kong court also appointed Martin Yupangco, a director of Alvarez &.Marsal, to take day-to-day management control of Legend Hotel.
" Whatever actions that needs to be implemented is already in the rehab plan we submitted to the Olongapo RTC. As far as I’m concerned, I remain president of Legend Hotel and I will not leave the 1,500 employees of the casino," Khoo said, adding that his group will consult with lawyers to determine what course of action to take.
Alvarez & Marsal, however, argued that the Hong Kong court has jurisdiction over LIRL and Legend Hotel because it is a Hong Kong-registered company. "It is this jurisdiction which gives the liquidator the right and duty to rehabilitate the business in order to maximize value for all stakeholders," Alvarez & Marsal said.
Alvarez & Marsal said it believes that rehabilitation is the best way to maximize value for all stakeholders of LIRL. "With its existing operations and the prospect of regaining the casino license we believe that Legend has a sound and secure future," the newly-appointed liquidator said.
The liquidator reported that Khoo, refusing to acknowledge the HK court ruling, attempted to incite a number of staff at The Legend Hotel and to use physical force to eject Yupangco and his colleagues from the hotel.
The Legend Hotel and Casino was closed last May by state gaing firm Philippine Amusement & Gaming Corp. (Pagcor) after it continually failed to honor its debts to creditors and to remit to the Subic Bay Metropolitan Authority and Pagcor the taxes it owed over the past several years, which now amount to approximately $164 million or P8.8 billion.
"While this is a serious situation, the financial creditors and Pagcor believe that LIRL has enormous potential and together, we are optimistic that with new management, the Legend Hotel can be restored to its former glory and the casino will successfully attract the international business it rightfully deserves," Alvarez & Marsal said.
Alvarez & Marsal said it plans to reopen the casino as soon as possible with the support and assistance of Pagcor.