Thunderbird Resorts Inc.: Philippines Update

Thunderbird Resorts Inc. / Thunderbird Resorts Inc.: Philippines Update . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.

PANAMA, REPUBLIC OF PANAMA--(Marketwire - June 10, 2011) - Thunderbird Resorts Inc. (FRANKFURT: 4TR)(EURONEXT: TBIRD) ("Thunderbird" or "Group") previously announced on 3 June 2011 and on 8 June 2011, that its affiliates in the Philippines, Eastbay Resorts, Inc. ("ERI") and Thunderbird Pilipinas Hotels and Resorts, Inc. ("TPHR") (collectively "Thunderbird Resorts Philippines"), filed lawsuits against the Philippine Amusement & Gaming Corporation ("PAGCOR"). The lawsuits were filed in response to notifications by PAGCOR that it "would initiate cessation proceedings" unless by 3 June 2011 ERI and TPHR provided "written unconditional acceptance" of onerous new Authority to Operate ("ATO") terms proposed by PAGCOR. The ATOs do not grant the right to PAGCOR to unilaterally impose new conditions and to threaten termination on this basis. Upon presentation of the ERI and TPHR lawsuits, the Court granted 72-hour temporary restraining orders ("TROs") enjoining PAGCOR from initiating the threatened cessation proceedings. On 7 June 2011 and 8 June 2011, the Court granted extensions of the TROs to both TPHR and ERI for an additional 17 days. The Court also consolidated the TPHR and ERI cases and set hearings before the 17-day period lapses to rule on motions for Temporary Injunctions enjoining PAGCOR from initiating the threatened cessation proceedings during the entire trial proceedings.

 

Thunderbird Resorts Philippines is obligated to set the record straight with respect to recent comments made by PAGCOR. First and foremost, ERI and TPHR have current written contracts with licensing rights in place with PAGCOR, which allow these companies to operate so that any statement that ERI and TPHR contracts, including licensing rights, expired in August 2009 is incorrect. Pursuant to the existing contracts, PAGCOR has accepted our tax/licensing fees and payments continuously since our opening in 2005 to date, which amounts to over PHP 2.5 Billion in gaming taxes. PAGCOR has had its casino monitoring teams located within our facilities since their inception and has continuously treated our facilities as validly operating casinos. Also, pursuant to our long-term contractual commitments, we have invested over PHP 2.6 billion to build two hotels and entertainment centers, all in reliance upon the currently active and binding contracts with PAGCOR. Second, we take seriously our responsibilities to our employees, to the communities where we operate, and to the provincial economies of those communities. Currently, we employ over 1,300 people, providing good wages and benefits. We continuously support Rizal and La Union municipalities through various community activities. Our facilities also support over 1,700 local vendors, spending with them over PHP 5.2 billion in the last 6 years. We have spent over PHP 27 million on various social responsibility initiatives, including monthly medical missions where we distribute medical care to the local areas in Rizal and Poro Point to over 10,000 constituents, an adopted school program affecting over 3,500 students in 2010, typhoon relief programs and donations to various other charities. Third, in order to protect our employees and our business, ERI and TPHR had no choice but to seek the protection of the courts when we received written notice that we would be shut down in 3 days unless we agreed to change our existing contracts.

 

ABOUT THE COMPANY

We are an international provider of branded casino and hospitality services, focused on markets in Central America, South America, Southeast Asia, India and Eastern Europe. Our mission is to "create extraordinary experiences for our guests." Additional information about the Group is available on its World Wide Web site at www.thunderbirdresorts.com (http://www.thunderbirdresorts.com).

 

Cautionary Notice: This release contains certain forward-looking statements within the meaning of the securities laws and regulations of various international, federal, and state jurisdictions. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential revenue and future plans and objectives of the Group are forward-looking statements that involve risk and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Group's forward-looking statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business, all of which are disclosed under the heading "Risk Factors" and elsewhere in the Group's documents filed from time-to-time with the NYSE Euronext Amsterdam and other regulatory authorities.

Contacts:
Thunderbird Resorts Inc.
Kevin McDonald
Investor Relations
[phone]
[e-mail] (mailto:[e-mail])

Thunderbird Resorts Inc.
Peter LeSar
Chief Financial Officer
[e-mail] (mailto:[e-mail])
www.thunderbirdresorts.com (http://www.thunderbirdresorts.com)  

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Thunderbird Resorts Inc.
Calle Alberto Navarro El Cangrejo, Apartado Panama, Republic of Panama


Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;

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