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Debtors' list
Takami Shinichi (Singapore-based Japanese): $2 million
Zhang Dechun (from China): $1.94 million
Chock Kok Sui (from Malaysia): $1.9 million
Husni Muchtar (from Indonesia): $920,500
Por Boon Chuan (from Malaysia): $518,436
INTEGRATED resort operator Marina Bay Sands (MBS) is taking five high-rolling casino gamblers to court in a bid to recover some $7.5 million they allegedly owe.
They include two Malaysians, a Macau-based businessman, an Indonesian and a Singapore-based Japanese.
This is the biggest group of alleged debt defaulters MBS has taken to court since it opened last year.
Analysts say the amount being recovered is small when seen in the context of the multi-million dollars that casinos make. However, MBS is probably pursuing legal action as a deterrent measure.
'Basically, this sets a precedent so the other VIPs know that the casinos are serious about collection,' said Bank of America Merrill Lynch analyst Melvin Boey.
Malaysians Por Boon Chuan and Chock Kok Sui are accused of owing MBS $518,436 and $1.9 million, respectively.
Chinese national Zhang Dechun, who is based in Macau, allegedly owes $1.94 million, and Indonesian Husni Muchtar $920,500.
Singapore-based Japanese Takami Shinichi allegedly owes $2 million. He is currently the only one fighting the case.
High Court pre-trial conferences will be held for each of the cases in the next two months.
According to court papers filed against each of the alleged debtors over the past two months, all five were said to have been premium players who became members of the Paiza, an exclusive club for valued patrons.
They had issued and signed cheques in favour of MBS, in case they failed to make good on their debts. MBS filled in the amounts payable to it.
But the cheques for the $7.5 million owed were all dishonoured by the various banks, including one in China.
Mr Por applied for a $1 million credit line last year, but was given $500,000 in December last year.
Court papers said he failed to pay back the $500,000 worth of chips even after the 90-day grace period he was given, after which a 12 per cent interest rate kicked in.
He rolled over his credit line for about two weeks last December, which earned him a $18,012 commission. That amount was used to offset his debts, which meant he owed $481,988 instead.
He failed to respond to letters from Harry Elias Partnership acting for MBS, and a cheque issued in September also bounced. With interest, the sum being sought from him is now $518,436.
Mr Chock, 53, an investment company director, applied for a $5 million credit line and was granted $1 million in chips in June last year. He raised this to $1.9 million and was issued another $900,000 in chips, said court documents.
After a $44,605 discount for commission offset against his credit line, he allegedly owes MBS $1.855 million.
Mr Zhang, 49, applied for and got $2 million in credit when he visited MBS in November last year. He is the president of the Liansheng Group in Fujian province.
He earned a $56,111 commission, which was offset against the $2 million credit line. He is now said to owe MBS $1.943 million.
Meanwhile, Mr Shinichi allegedly placed $300,000 with the casino to qualify as a premium player in June last year.
He allegedly started with a $200,000 credit line, which increased to $1 million in February this year.
In April, he was allegedly issued chips worth $1 million, and a day later was issued with another $300,000 worth of chips at his request.
That same day, he sought an increase to $2 million, which was approved by MBS, and he was issued with another $700,000 worth of chips. MBS claims he has not settled an outstanding debt of $1,999,324, in papers filed by Drew and Napier lawyers.
But Mr Shinichi's lawyer Sunil Singh Panoo is seeking to void the suit.
He claimed Mr Shinichi did not qualify as a premium player when he was issued credit in June last year, as he did not have the minimum credit balance of $100,000 in his deposit account when he first started to roll.
It followed that MBS acted as a moneylender under the Moneylenders Act in allowing him credit later, said Mr Singh. And as MBS is not a licensed moneylender, the credit is unrecoverable, he argued.
Mr Singh had argued a similar point for Singaporean Lester Ong, who was sued last year for about $241,000 in debts owed to MBS.
Mr Ong had claimed he was not a premium player. The High Court case against him is pending.
A check with rival casino operator Resorts World Sentosa showed it has not taken any player to court so far.
Additional reporting by Jessica Lim
Only premium players get credit
UNDER Singapore's Casino Control Act, the two casinos here can extend credit only to premium players. They are defined as patrons who have deposited at least $100,000 with the casinos. This can be in the form of cash, cheque or chips.
The casinos will decide on a case-by-case basis how much to lend a patron, taking into account the client's financial standing and ability to repay.
According to gaming analysts, the credit can be as much as $3 million to $5 million.
Industry players say that before a casino extends credit to a player, both parties must sign a written agreement stating the player's maximum credit limit, repayment time and other terms and conditions.
Repayment periods vary from a few months to a year, said HSBC analyst Sean Monaghan, who added that casinos typically issue warnings if payment is not made within the stipulated time.
Casinos haul players to court usually only as a last resort.
If these gamblers fail to make their repayments on time, the company would have to report an impairment loss.
JESSICA LIM
Source: Straits Times © Singapore Press Holdings Ltd.
Debtors' list
Takami Shinichi (Singapore-based Japanese): $2 million
Zhang Dechun (from China): $1.94 million
Chock Kok Sui (from Malaysia): $1.9 million
Husni Muchtar (from Indonesia): $920,500
Por Boon Chuan (from Malaysia): $518,436
INTEGRATED resort operator Marina Bay Sands (MBS) is taking five high-rolling casino gamblers to court in a bid to recover some $7.5 million they allegedly owe.
They include two Malaysians, a Macau-based businessman, an Indonesian and a Singapore-based Japanese.
This is the biggest group of alleged debt defaulters MBS has taken to court since it opened last year.
Analysts say the amount being recovered is small when seen in the context of the multi-million dollars that casinos make. However, MBS is probably pursuing legal action as a deterrent measure.
'Basically, this sets a precedent so the other VIPs know that the casinos are serious about collection,' said Bank of America Merrill Lynch analyst Melvin Boey.
Malaysians Por Boon Chuan and Chock Kok Sui are accused of owing MBS $518,436 and $1.9 million, respectively.
Chinese national Zhang Dechun, who is based in Macau, allegedly owes $1.94 million, and Indonesian Husni Muchtar $920,500.
Singapore-based Japanese Takami Shinichi allegedly owes $2 million. He is currently the only one fighting the case.
High Court pre-trial conferences will be held for each of the cases in the next two months.
According to court papers filed against each of the alleged debtors over the past two months, all five were said to have been premium players who became members of the Paiza, an exclusive club for valued patrons.
They had issued and signed cheques in favour of MBS, in case they failed to make good on their debts. MBS filled in the amounts payable to it.
But the cheques for the $7.5 million owed were all dishonoured by the various banks, including one in China.
Mr Por applied for a $1 million credit line last year, but was given $500,000 in December last year.
Court papers said he failed to pay back the $500,000 worth of chips even after the 90-day grace period he was given, after which a 12 per cent interest rate kicked in.
He rolled over his credit line for about two weeks last December, which earned him a $18,012 commission. That amount was used to offset his debts, which meant he owed $481,988 instead.
He failed to respond to letters from Harry Elias Partnership acting for MBS, and a cheque issued in September also bounced. With interest, the sum being sought from him is now $518,436.
Mr Chock, 53, an investment company director, applied for a $5 million credit line and was granted $1 million in chips in June last year. He raised this to $1.9 million and was issued another $900,000 in chips, said court documents.
After a $44,605 discount for commission offset against his credit line, he allegedly owes MBS $1.855 million.
Mr Zhang, 49, applied for and got $2 million in credit when he visited MBS in November last year. He is the president of the Liansheng Group in Fujian province.
He earned a $56,111 commission, which was offset against the $2 million credit line. He is now said to owe MBS $1.943 million.
Meanwhile, Mr Shinichi allegedly placed $300,000 with the casino to qualify as a premium player in June last year.
He allegedly started with a $200,000 credit line, which increased to $1 million in February this year.
In April, he was allegedly issued chips worth $1 million, and a day later was issued with another $300,000 worth of chips at his request.
That same day, he sought an increase to $2 million, which was approved by MBS, and he was issued with another $700,000 worth of chips. MBS claims he has not settled an outstanding debt of $1,999,324, in papers filed by Drew and Napier lawyers.
But Mr Shinichi's lawyer Sunil Singh Panoo is seeking to void the suit.
He claimed Mr Shinichi did not qualify as a premium player when he was issued credit in June last year, as he did not have the minimum credit balance of $100,000 in his deposit account when he first started to roll.
It followed that MBS acted as a moneylender under the Moneylenders Act in allowing him credit later, said Mr Singh. And as MBS is not a licensed moneylender, the credit is unrecoverable, he argued.
Mr Singh had argued a similar point for Singaporean Lester Ong, who was sued last year for about $241,000 in debts owed to MBS.
Mr Ong had claimed he was not a premium player. The High Court case against him is pending.
A check with rival casino operator Resorts World Sentosa showed it has not taken any player to court so far.
Additional reporting by Jessica Lim
Only premium players get credit
UNDER Singapore's Casino Control Act, the two casinos here can extend credit only to premium players. They are defined as patrons who have deposited at least $100,000 with the casinos. This can be in the form of cash, cheque or chips.
The casinos will decide on a case-by-case basis how much to lend a patron, taking into account the client's financial standing and ability to repay.
According to gaming analysts, the credit can be as much as $3 million to $5 million.
Industry players say that before a casino extends credit to a player, both parties must sign a written agreement stating the player's maximum credit limit, repayment time and other terms and conditions.
Repayment periods vary from a few months to a year, said HSBC analyst Sean Monaghan, who added that casinos typically issue warnings if payment is not made within the stipulated time.
Casinos haul players to court usually only as a last resort.
If these gamblers fail to make their repayments on time, the company would have to report an impairment loss.
JESSICA LIM
Source: Straits Times © Singapore Press Holdings Ltd.
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