5 hours ago
1
Upgrade to High-Speed Internet for only ₱1499/month!
Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.
Visit Suniway.ph to learn
Growing scrutiny over the assets and businesses of former Ako Bicol Representative Zaldy Co has brought to light a five-year dispute with popular online gaming firm DigiPlus Interactive Corp. stemming from their joint ownership of Midas Hotel and Casino.
Law firm Villaraza and Angcangco confirmed that a case is pending between Co and DigiPlus (when it was still known as Leisure & Resorts World Corp.) that originated from an arbitration over the valuation of Midas Hotel and Casino.
DigiPlus prevailed in arbitration, but Co's firm, Eco Leisure and Hospitality Holdings Co., is appealing the decision in a Pasig court.
“We confirm that there was an arbitration case and DigiPlus won the case. The other party filed an appeal before a Regional Trial Court in Pasig, and the case remains unresolved,” the law firm stated.
DigiPlus, in its amended annual report in April, reported that the case is docketed as Civil Case R-PSG-22-02495-SP, Regional Trial Court, Pasig City, Branch 268.
The statement from DigiPlus’ counsel follows social media posts last Friday which claimed that the Anti-Money Laundering Council's freeze orders on Co’s bank accounts could bode well for the online gaming firm.
DigiPlus (LRWC) became Co’s partner in 2012 when it acquired half of Hotel Enterprises of the Philippines, Inc. (HEPI), which owns and operates the Midas Hotel and Casino, for ₱750 million.
In a disclosure to the Philippine Stock Exchange, LRWC said it had executed a preliminary agreement with Co’s Eco Leisure for the acquisition of 50 percent of the outstanding capital stock of HEPI. Market sources indicated that Eco Leisure had acquired the 50 percent stake in HEPI owned by former partner Lucio Co and subsequently sold it to LRWC (now DigiPlus).
Lawyer and social media personality Jesus Falcis said in an online post that DigiPlus eventually sought to exit Midas Hotel and Casino due to alleged disputes with Co and found a buyer for its stake.
However, Eco Leisure exercised its right of first refusal and offered to acquire DigiPlus' shares for ₱2.5 billion, a price DigiPlus agreed to.
Co’s firm, however, suddenly claimed that DigiPlus owed the company billions in reimbursements and was thus willing to pay only ₱1 billion instead of the agreed amount.
DigiPlus refused the lower offer since its counsel, Villaraza & Angangco Law, said the claims by Eco Leisure were fabricated expenses or "ghost expenditures" which were never reflected in Midas Hotel's financial statements.
Because of the impasse, Eco Leisure filed an arbitration case, which it ultimately lost. Eco Leisure appealed the ruling before the Pasig City Regional Trial Court in 2022, where the case remains pending.
