Genting Malaysia’s US subsidiary has filed a motion with the US District Court, Southern District of Florida to dismiss a suit against it by a key partner in Resorts World Bimini (RWB) in the Bahamas due to it being a shareholder dispute.
In a filing with the Malaysian bourse, Genting Malaysia said that Genting Americas Inc wants the complaint dismissed on multiple grounds, including that “this is a shareholder dispute and therefore should be dealt with pursuant to the Shareholders’ Agreement between the shareholders of [RWB operator] BB Entertainment Ltd in a forum other than the US Court.”
Genting Malaysia also says the claims are “time-barred” and that the complaint fails to adequately allege facts showing that the required elements for each claim have been met.
“Genting Americas Inc continues to firmly believe that the Complaint is baseless and without merit, and will continue to defend against these claims,” it said.
The motion to dismiss comes after RAV Bahamas, which owns 22% of BB Entertainment, filed a lawsuit with the court in early October alleging Genting – owner of a majority 78% – has turned the IR into a “financial wasteland” by dumping onto it almost a billion dollars in debt.
The lawsuit describes Genting’s alleged actions as “a massive and co-ordinated fraud” that has left assets contributed to RWB by RAV Bahamas as “essentially worthless”. It also accuses Genting of “depriving” the joint venture of profits and says the Malaysian firm “has deliberately kneecapped” its efforts to dig deeper by denying full access to the books.
Genting Malaysia has since described the claim as “malicious and baseless” and accused RAV of seeking to extract an “exorbitant payment”.
BB Entertainment was formed as a 50/50 joint venture in 2012 to further develop RAV’s existing Bimini Bay, with RAV contributing the 20 acres of land upon which RWB now sits before Genting assumed majority control in 2015. RWB comprises a 10,000 square-foot casino, 305 hotel rooms, restaurants, lounges and a jetty to dock cruise ships.
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