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MTDC agrees to pay US$ 3.5 million to Yacht Tours
January 31, 2010
Maldives Tourism Development Corporation (MTDC) agrees to settle US$ 3.5 million (Mrf 50 million) to Yacht Tours to settle the legal dispute outside the court.
MTDC chairman Ibrahim Saleem (Bandhu) said the decision was made on Wednesday evening.
“Herethere resort can manage well by operating charter flights,” he said. “Income cannot be generated with few tourists. The tour operators agree to operate charter flights if there is not legal dispute.”
“Rather pending the US$ 55 million worth Herethere resort in the court,” said board member Ahmed Shareef. “The company and the shareholders would benefit most if we start the business operation.”
Herethere resort case had made loss both MTDC and Yacht Tours; said Saleem explaining the US$ 3.5 million is not an amount paid as compensation.
He added US$ 1 million will be paid as down payment and balance US$ 2.5 million to be settled in within two years.
Dr Mohamed Jameel, Yacht tours legal advisor and former communication minister said “it was the best decision for the moment”.
“Considering the economic crisis both nationally and worldwide,” he continued. “This is the best way for the both parties.”
MTDC CEO Mohamed Mihad said after resolving the legal dispute, the company would proceed to lease the resort for a different party.
“Still there are interested parties,” he said.
273-bed Herethere resort was leased to Yacht Tours – a company owned by ex-MP Abdulla Jabir – in May 2008 for US$ 18,196 per bed annually.
MTDC terminated the agreement, when Yacht Tours refused to pay the rent claiming MTDC failed to stick to the agreement.
MTDC chairman Ibrahim Saleem (Bandhu) said the decision was made on Wednesday evening.
“Herethere resort can manage well by operating charter flights,” he said. “Income cannot be generated with few tourists. The tour operators agree to operate charter flights if there is not legal dispute.”
“Rather pending the US$ 55 million worth Herethere resort in the court,” said board member Ahmed Shareef. “The company and the shareholders would benefit most if we start the business operation.”
Herethere resort case had made loss both MTDC and Yacht Tours; said Saleem explaining the US$ 3.5 million is not an amount paid as compensation.
He added US$ 1 million will be paid as down payment and balance US$ 2.5 million to be settled in within two years.
Dr Mohamed Jameel, Yacht tours legal advisor and former communication minister said “it was the best decision for the moment”.
“Considering the economic crisis both nationally and worldwide,” he continued. “This is the best way for the both parties.”
MTDC CEO Mohamed Mihad said after resolving the legal dispute, the company would proceed to lease the resort for a different party.
“Still there are interested parties,” he said.
273-bed Herethere resort was leased to Yacht Tours – a company owned by ex-MP Abdulla Jabir – in May 2008 for US$ 18,196 per bed annually.
MTDC terminated the agreement, when Yacht Tours refused to pay the rent claiming MTDC failed to stick to the agreement.
Source: Haveeru Online
| Daily Trading Report as at 31/07/10 13:20 | ||||||
| Movement | Last sale | Volume | Closing Buy | Closing Sell | Market Cap | |
| MTCC | -24 | 156 | 10 | - | - | 39,000,000 |
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| MTDC | +2 | 165 | 85 | 163 | 200 | 518,755,215 |
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| Qty | Price | Qty | Price |
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| 200 | 163 | 3333 | 200 |
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