Bid winner Waterfront Philippines Inc. in the privatization of the multi-billion peso Mimosa Leisure Estate (MLE) here was not permitted to take over its management and operation for failure to settle its obligation of some P872.5 million to Clark Development Corp. (CDC).

The 90-day grace period expired on Saturday.

This developed after Waterfront requested CDC for another 40-day grace period while it is negotiating with a Korean investor to finance the winning bidderʼs obligation to CDC.

The CDC legal department earlier said that the estate corporation can not grant the requested extension of settling its financial obligation because it is a violation of the legal procedure of its terms of reference (TOR).

In addition, a foreign investment firm has backed out from Waterfrontʼs request to a tie-up and agree to a joint venture in settling its financial commitment as stipulated in the Memorandum of Understanding (MOU) which expired on Oct.11.

The CDC legal department also explained earlier that CDC can not grant the requested extension explaining that CDC was not at fault in the bidding. With this development, a former CDC director expressed fear that it could lead to a failure and conduct another bidding.

The former CDC director also disclosed that Philippine Amusement and Gaming Corp. (Pagcor) continued refusing a license to Waterfront to operate the Mimosa Casino unless the more than P400 million financial obligation of the former operator of Mimosa Estate is settled. - PNA