Macau Legend Disputes Termination of Cape Verde Contracts
Macau Legend Development Limited has announced its intention to challenge the Cape Verde government’s decision to terminate its contracts for a major resort project in the country.
Island country of Cape Verde. Macau Legend fights Cape Verde contract decision.
LISTEN TO THIS ARTICLE:The Cape Verdean government recently declared the cancellation of agreements with Macau Legend Development (MLD), citing what it called repeated breaches of terms connected to a €250 million tourism and gaming investment in Praia. Officials also accused MLD of violating gaming regulations by transferring more than 20% of the project’s ownership without securing the government’s approval.
Related: Macau Legend Shifting Away from Gambling, Looks to Sell Assets
Long Delays Anger Local Groups
The ambitious development, first unveiled in 2015, has faced delays since construction began in 2016. Progress stalled, sparking criticism from local groups, particularly environmental advocates. With much of the project still incomplete, the government now aims to reclaim the assets associated with the development.
In a statement, Macau Legend revealed it was officially notified on November 19, 2024, of the government’s decision to terminate agreements made through its subsidiaries, MLD Cabo Verde Resorts SA and MLD Cabo Verde Entretenimento SA. These companies were tasked with building and managing a hotel, casino, and residential facilities in Cidade da Praia Bay.
According to the government, the subsidiaries failed to meet agreed timelines and left the investment project unfinished. Authorities have invoked their right to cancel the contracts and reclaim associated assets, including those already built.
Macau Legend has responded by asserting its commitment to protecting its interests. The company said that it is “actively seeking legal counsel” and that it plans to “vigorously contest the government’s allegations to protect the interests of the Company and its shareholders.”
More Regulation News
No Significant Negative Impact on Maca Legend
CEO Li Chu Kwan also addressed the financial implications, noting that as of June 30, 2024, the affected assets had an estimated value of HK$47 million. The company is evaluating potential impairments but anticipates no significant harm to its overall financial stability.
The original agreements gave Macau Legend a 25-year gaming license, including 15 years of exclusivity on Santiago Island. The concession cost CV Entertainment Co., a subsidiary of MLD, about €1.2 million. Macau Legend was also awarded exclusive rights to operate online gambling and the country’s sports betting market for a decade.
RELATED TOPICS: Regulation
Latest News
Most Read
Must Read
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Macau Legend Disputes Termination of Cape Verde Contracts