An affiliate of eSun Holdings Limited, a major Asian real estate and film production company, is claiming HKD689 million (USD88.6 million) damages from its joint venture partner in the stalled Macao Studio City project.
East Asia Satellite Television (Holdings) Limited, a non-wholly owned subsidiary of Hong Kong-listed eSun, is alleging breaches or induced breaches of contract against its joint venture partner, New Cotai, LLC, and parties interested in the company, including Silver Point Capital L.P. of Greenwich, Connecticut, in the United States and Oaktree Capital Management L.P. of Los Angeles, California.
East Asia Satellite Television filed its claim with the High Court in Hong Kong. The document details East Asia’s assertion that its partners failed to cooperate and permit progress in the construction of the entertainment, hotel, retailing, and gaming complex on Cotai near to the Lotus Bridge crossing point from Mainland China.
East Asia is also claiming damages on behalf of the joint venture of approximately USD2.385 billion (HKD18.6 billion) for “inducing or procuring breaches of fiduciary duties” owed to the joint venture.
eSun says it is pursuing the litigation to protect East Asia’s interests in Macao Studio City and to allow the development to progress.
