Melco Subsidiary, Former Business Partner Prepare for Macau Court Battle

May 11, 2022 Macau Crime & Legal

COD Resorts Limited, a subsidiary of Melco Resorts & Entertainment, is ready to face a former business partner in court. The company wants millions of dollars after Luk Hing Investment Limited defaulted on payments on a property it owns in Macau.

In October of last year, Melco’s COD Resorts Limited took control of Club Cubic, a nightclub at its City of Dreams Macau integrated resort. It did so, according to the company at the time, because its operator, Luk Hing Investment Limited, failed to keep up with its obligations. It fell behind in its payments, leading Melco to take it back and rename the club, Para.

At the same time, COD submitted a civil case against its former business partner, looking to recuperate the $10.95 million Luk Hing owed. That led to a countersuit this past January, and the case is now finally making its way to a Macau courtroom, according to Inside Asian Gaming.

When Melco reclaimed Club Cubic last year, Luk Hing acknowledged that COVID-19 had hurt its business. This led to revenue losses, which made it difficult to keep up with its financial obligations. However, its other properties avoided damage. These properties included the Cubic Space+ nightclub in Zhuhai City and a restaurant in Hong Kong,