KUALA LUMPUR (Nov 27): Genting Malaysia Bhd (GENM) said today Fox Entertainment Group LLC, Twentieth Century Fox Film Corp, FoxNext LLC (collectively referred to as FOX) issued a notice, in which FOX terminated a memorandum of agreement (MoA) with GENM and claimed some US$46.2 million (about RM193.6 million) in accelerated payments.

GENM told Bursa Malaysia the group denies that FOX had grounds to terminate the MoA, denies any liability resulting therefrom, and has pursued cause of action against FOX for breach of contract, and breach of the implied covenant of good faith and fair dealing, among others.

"The board wishes to announce that GENM had, on Nov 26, 2018 (United States Pacific Standard Time), filed legal proceedings in the state of California, United States, against FOX, Twenty First Century Fox Inc (21CF) and The Walt Disney Company ("Disney" and together with FOX and 21CF "defendants") in response to a notice issued by FOX in which it terminated the MoA and claimed approximately US$46.2 million (or the equivalent of approximately RM193.6 million) in accelerated payments.

"GENM has also pursued cause of action against Disney and 21CF for inducing breach of contract and for interference with contract. GENM intends to fully enforce its rights under the MoA, claim for the cost of its investments and consequential and punitive damages that in total will exceed US$1 billion (or the equivalent of approximately RM4.2 billion) and such other reliefs to be determined by the court," GENM said.

GENM said the litigation is not expected to impact its current business operations. GENM said as with any litigation, the validity of the causes of action and the availability and extent of GENM's damages and other requested relief cannot be ascertained at this juncture and will depend on the outcome of the legal proceedings against the defendants.

"As such, GENM will make the necessary announcements once there is a material development in relation to the above matter," GENM said.

According to GENM, it had entered into the MoA on June 1, 2013 with Twentieth Century Fox Licensing & Merchandising, a division of Fox Entertainment Group Inc.

Under the MoA, GENM said it was granted a licence to use certain intellectual property rights associated with Fox theatrical motion pictures in connection with the design, development, construction and operation of what was to be called the Twentieth Century Fox World theme park under the Genting Integrated Tourism Plan.

The MoA was subsequently amended on June 10, 2014 and June 9, 2017, GENM said.