A hedge fund will get the chance to try derailing a proposed settlement to sprawling litigation over the failed $2.6 billion merger between Manila’s largest luxury casino and 26 Capital, a blank-check company.
A Delaware judge let Zama Capital Master Fund join the court fight between the Okada Manila’s owners and 26 Capital Acquisition, Bloomberg reported.
The lawsuit targets an affiliate of Japan’s Universal Entertainment that canceled the transaction amid legal wrangling in the Philippines that drew in the country’s top court and high-level politicians there.
A court in Delaware said back in September that the Japanese group would not need to go ahead with a merger agreement with 26 Capital in a deal that would involve the listing in the U.S. of the operator of the Okada Manila resort.
The judge, vice chancellor Travis Laster, ruled that “multiple factors” led to the decision, according to the court ruling document.
The decision not to order the merger completion was in part because 26 Capital “engaged in conduct that should not be rewarded,” said the judge.
Jason Ader, chairman and CEO of 26 Capital, voed at the time that the SPAC would continue to explore all available strategic options. Read more.
