Banks Freeze Okada Manila Accounts amid Takeover

Banks Freeze Okada Manila Accounts amid Takeover

Okada Manila, an iconic integrated resort in the Philippines, has been the subject of a legal battle. Kazuo Okada, the resort’s founder and Tiger Resorts Asia Ltd (TRAL) have been fighting over ownership of the venue. As the quarrel continues, banks have frozen Okada Manila’s bank accounts.

Banks Freeze the Resort’s Bank Accounts

The announcement was made by the legal counsel representing the company’s board and TRAL. According to the specialists, major banks such as Asia United Bank, BDO Unibank and the Union Bank of the Philippines have all temporarily frozen all accounts related to Okada Manila.

BDO Unibank contacted the two parties and proposed to have them sign an agreement that would have helped Okada Manila workers receive their salaries. However, Kazuo Okada and his faction wanted to have none of it. The Okada party firmly refused to sign any document that includes director Hajime Tokuda’s signature.

Estrella Elamparo, a representative of the pro-TRAL faction, accused Kazuo Okada and his camp of imposing “unreasonable conditions” with no regard for the employees’ wellbeing.

The Kazuo Okada group will likely use Okada Manila’s cage money to pay employees’ salaries for the time being. However, the revenue money the casino currently has will not be enough to sustain Okada Manila in the long run.

Kazuo Okada Violently Took Over the Venue

The Okada group forcibly took control of Okada Manila last month. Back then, the Okada faction forcibly entered the venue and chased certain employees out.

It is believed that this is Okada’s revenge on Tiger Resorts, Leisure and Entertainment Inc. for removing him from the company’s board of directors in 2017. Back then, the board accused Okada of participating in financial fraud involving $3 million.

In April, the Supreme Court of the Philippines issued a status quo ante order to TRLEI. It forced the company’s board to return to the state it was five years ago. This, in turn, meant the return of Kazuo Okada. Because of the status quo order, Okada not only returned but forcibly took control of the whole venue.

Elamparo accused the violent takeover and said that this illegal action will come at a cost. According to her, Okada Manila’s funds will quickly dwindle. This will have a negative impact on guests and will also trouble the 5,000 workers who “rely on their salaries to meet their daily needs.”

No bank will engage with an entity under an ownership dispute. Once Okada Manila’s funds start to run dry, they will have problems dealing with the operations of the integrated casino resort.

Estrella Elamparo, TRAL faction representative

A week ago, TRAL published a public advisory warning against Kazuo Okada and his group.

Author: Ian Douglas