Banyan Tree files petition in Bahrain hotel dispute
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Dubai, United Arab Emirates, 10 March 2010 - The Board of Directors of Banyan Tree Holding Limited (‘BTH’ or ‘Company’ ) wishes to announce its wholly- owned subsidiary, Banyan Tree Hotels& Resorts Pte. Ltd. (‘BTHR’) has filed a petition in the Kingdom of Bahrain to wind-up Al Areen Desert Spa and Resorts Holding Company B.S.C. (closed) now known as Al Areen Holding Co. B.S.C. (closed) (‘Al Areen’), which is the owner of Banyan Tree Bahrain, for an outstanding debt of $1,122, 000 that Al Areen failed to pay BTHR pursuant to the Hotel Management Agreement dated march 19, 2005 (HMA) and Settlement Agreement dated November 17, 2009 between Al Areen and BTHR.
The winding-up proceedings may be completed this year or in a subsequent year. BTHR may be successful in the winding-up proceedings but may not be successful in recovering any amounts from it. If BTHR is successful in the winding-up proceedings, the HMA will be terminated as a consequence. . If BTHR is not successful in recovering any amounts from the winding-up proceedings, the net tangible assets and earnings per share of BTH will be reduced by S$0.0015.
The Company will, where necessary, announce any further material development relating to its claim against Al Areen and the winding-up proceedings.
An official statement from Banyan Tree said :-
“It is common knowledge that the financial crisis has impacted several entities in the Middle East; to a certain degree, it has affected some of our hotels. We endeavour to operate with the highest standards, and if we are unable to settle issues amicably, we need to defend our own credibility and as a matter of principle, take a firm position with regards to any breaches and outstanding debts.
While we remain committed to the GCC region and will continue to explore opportunities, it is very important that we find like-minded partners who sincerely share our vision and demonstrate a commitment to the Banyan Tree brand experience. Our plans to open in other parts of the Middle East continue to be on track. In January this year, we soft-opened Banyan Tree Al Wadi, a 101-key desert, beach and golf resort in the Ras Al Khaimah emirate north of Dubai. There are also five other projects under development in Abu Dhabi, Egypt and Oman”
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