June 14, 2009 03:59 PM Sunday [ journal.com .ph ]
THE Subic Bay Metropolitan Authority yesterday took over the management of Legenda Hotel and several properties under Legend International Resorts Limited due to unsettled rent and unpaid casino shares that racked up to P1 billion.
As of April 30, SBMA Administrator Armand Arreza said LIRL has a total obligation of P877,223,122.34 in casino shares, rental for Legenda suites, sublease share rental, medical services, power and maintenance. He said LIRL also owes SBMA $3,805,552.94 in base rent and garbage fee.
SBMA took over the Main Legenda, El Centro and Grand Legenda facilities after issuing a final notice of termination of lease agreement and final demand for payment last Feb. 12.
“There were no hotel guests when SBMA repossessed the Legends Suites and the SBMA did not drive out LIRL’s security personnel from the premises,” Arreza clarified.
The SBMA pushed through with the takeover pursuant to the contractual provision in the Lease Agreement that in case of default, SBMA may immediately “re-enter, renovate, or re-let all or part of the property and cancel all rights and privileges granted to tenant.”
Also, Arreza said the LIRL failed to get any temporary restraining order or writ of preliminary injunction from the Court of Appeals where the company questioned the dismissal of the rehabilitation case it filed with the Olongapo City Regional Trial Court Branch 72 last Feb. 9.
On May 29, the SBMA Board of Directors recommended the cancellation of LIRL’s Certificate of Registration and Tax Exemption which will expire on Nov. 13.