Malaysian investor mulls libel suit vs Legend International liquidator

Malaysian investor Khoo Boo Boon is considering filing a libel suit against Kevin Flynn who has been appointed as liquidator of Legend International Resorts Ltd. (LIRL) by a Hong Kong court.

In a briefing with reporters, Khoo said he would be filing charges against Flynn for allegedly besmirching his good reputation.

Flynn reportedly accused him of mismanagement of LIRL, which owns three hotels within the Subic Bay Freeport Zone – the Legenda Hotel, Grand Seasons Hotel, and Legenda Suites.

"Khoo, currently the chief executive officer of LIRL, said Flynn’s appointment as liquidator is null and void since his authority has yet to be recognized by the proper Philippine court.

"Before a foreign court order could be given effect or enforced in the Philippines, the same must first become final and recognized by a proper Philippine court," Khoo said.

Khoo said the Subic Bay Metropolitan Authority and LIRL’s banks have also taken the official position that Flynn needs the required Philippine court recognition judgment before he can act in the Philippines and give effect to the Hong Kong court orders in the Philippines.

Khoo said he was able to increase gross company revenues by 39 percent from $29.66 million in August 2002 to the present of $41.31 million. Casino rollover has also increased by 62 percent from $580.4 million in August 2002 to $938.9 million currently.

Aside from this, Khoo said he has paid SBMA a total of P192 million from January 1995 to 1999.

Khoo said he would only step down from his post as CEO of LIRL if Lynn secures such recognition from a Philippine court.

The liquidator has been tasked with developing a plan to bring Legend Hotel back to profitability and save the jobs of more than 1,500 employees.

The liquidator, 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," the liquidator said.

Also, the liquidator said it believes that rehabilitation is the best way to maximize value for all stakeholders of LIRL.