Universal Entertainment, the parent company of Tiger Resort, Leisure and Entertainment Inc (TRLEI), has regained control of the Okada Manila integrated resort property after a prolonged dispute with its former CEO and founder, Kazuo Okada. The power struggle began in 2017 when Okada was removed from his positions due to alleged misappropriation of funds. Despite a recent court order temporarily reinstating Okada, Universal Entertainment, supported by government authorities, successfully reasserted its control over the resort.
The Dispute and Power Struggle:
Kazuo Okada’s removal from TRLEI in 2017 stemmed from allegations of financial impropriety. However, in April 2022, the Philippine Supreme Court issued a status quo ante order, which temporarily reinstated Okada to his former roles. Subsequently, Okada and several others allegedly forcefully entered and occupied the Okada Manila resort, leading to legal and operational complications for TRLEI. The company threatened to make criminal allegations against Okada, causing further disruptions, including delays in TRLEI’s NASDAQ listing and Universal Entertainment’s Q2 financial results.
Government Intervention and Regaining Control:
The impasse reached its climax when the Philippine Amusement and Gaming Corporation (PAGCOR), a government-owned gaming entity, withdrew its recognition of the board appointed by Kazuo Okada. On September 2, Universal Entertainment staff, accompanied by the Philippines National Police, seized control of Okada Manila. Reports indicated that security forces loyal to Okada barricaded themselves in the casino’s basement car park in response. The transition of power was mostly peaceful, with PAGCOR and the police ensuring enforcement of the order.
Investigation and Future Impact:
Following the takeover, Universal Entertainment alleged that Kazuo Okada’s group had potentially destroyed contracts, taken confidential documents, wrongfully seized assets, and falsified digital data. The company stated that it would investigate these actions and assess their impact on its financial statements. The status quo ante order issued by the Philippine Supreme Court remains in effect, and the case is currently being investigated by the Court of Appeals. Kazuo Okada continues to hold a director position at TRLEI.
Universal Entertainment has successfully reclaimed control of the Okada Manila integrated resort property in a face-off with its founder, Kazuo Okada. This protracted power struggle, triggered by allegations of financial misconduct, created significant disruptions for TRLEI and Universal Entertainment. The intervention of PAGCOR and the Philippines National Police ultimately enabled Universal Entertainment to regain control of the resort. The company now faces the task of investigating the alleged actions of Kazuo Okada’s group and assessing any potential impact on its financial statements. As the legal proceedings continue, the future direction of Okada Manila and the involvement of its founder remain uncertain.