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22 July 2009

SBMA Official Statement on Legenda Employees

OFFICIAL STATEMENT by SBMA Labor Department Head, Atty. Roy C. Pastor
Re: Legend International Resorts Ltd. (LIRL) Employees
Date: 20 July 2009

We have been advised that the management of Legend International Resorts Ltd. has temporarily suspended the company’s hotel, food and beverage, and related facilities, as well as its administration and support functions, and has thus temporarily suspended as well the payment of all wages and benefits to 151 of its 250 employees for next six (6) months.

In a memorandum to its employees, LIRL said it was constrained to undertake such measures due to the SBMA’s actions against the company.

To pass the blame for the situation of these employees to the SBMA is grossly unfair.

The real culprit here is the mismanagement of LIRL, which has caused the company to accrue huge debts to the Philippine government, including unpaid obligations to the SBMA, amounting to PhP850 million.

In fact, the SBMA has worked on a debt restructuring scheme with the LIRL management, which the company has not complied with.

Nonetheless, the SBMA shall do everything within its power and authority to protect the welfare of LIRL employees, especially those who have been affected by this move by the LIRL management.

The SBMA Labor Department, in particular, will look into possible labor violations arising from LIRL’s action, including its alleged failure to file the appropriate notice with the Department of Labor and Employment (DOLE).

The SBMA will definitely not allow and will never allow these employees to become victims of LIRL’s mismanagement, resulting in its continued refusal to settle its outstanding debts to its creditors.

-End of Statement-

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