A British Virgin Islands corporation has filed a $22.5-million lawsuit against the owner of Tinian Dynasty Hotel and Casino for allegedly refusing to return the money it deposited.
Gain Millennia Limited, through counsel Colin M. Thompson, is suing Hong Kong Entertainment (Overseas) Investments Limited for breach of contract.
Gain Millennia asked the Superior Court to hold HKE liable to pay the company $22,471,477.48, plus post-judgment interest at a rate of 9 percent, and court costs.
Thompson stated in the complaint that Gain Millennia and HKE entered a contract on Dec. 9, 2014.
Thompson said the purpose of the contract was to secure the repayment of refundable deposits in the amount of $19,471,477.48 made by Gain Millennia to HKE.
The lawyer said HKE promised to return the entire deposit in three installments.
The first installment was allegedly due on Feb. 28, 2015, the second was due on April 30, 2015, and the final installment was due on June 30, 2015.
Thompson said pursuant to the contract, if HKE failed to return the deposit as obligated, the entire amount became immediately repayable to Gain Millennia.
Thompson said HKE failed and refused to return any portion of the deposit.
Thompson said Tinian Entertainment Co. Ltd. and HKE entered a contract on July 6, 2015.
He said under this contract, Gain Millennia was required to make certain deposits to HKE.
Thompson said pursuant to the terms of the contract, Tinian Entertainment Co. deposited to HKE $500,000 on July 9, 2015 and $2,500,000 on July 17, 2015.
Thompson said pursuant to this contract, HKE became obligated at the end of December 2015 to refund to Tinian Entertainment the total deposits of $3 million.
HKE allegedly failed or refused to return any of the deposit.
Thompson said that on Jan. 15, 2016, Tinian Entertainment Co. assigned all of its rights and obligations under the contract, including the right to return the $3 million, to Gain Millennia.
In February 2015, Saipan Tribune reported that in January 2015, the owner of Tinian Dynasty entered a memorandum of understanding with Gain Millennia.
The MOU sets forth the principal terms and conditions upon which HKE and Bermuda-based Chinese Strategic Holdings would enter into the lease of the Tinian Dynasty.
Under the MOU, Gain Millennia would give HKE a HK$50 million (around $6.4 million at that time) refundable deposit for partial settlement and discharge of the total rent for the initial term, which is a fixed term of six years from the execution of the lease.
Under the MOU, conditional upon approval of the Tinian Casino Gaming Control Commission, Gain Millennia will have complete control over Tinian Dynasty hotel operations as well as its gaming operations during the term.
Tinian Entertainment Co. is reportedly the new owner of Tinian Dynasty.