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Bali Sani Padma and Bali Sani Suites to be Sold at Auction.

Denpasar Court Ruling Paves the Way for Sale of Two Hotels Embroiled in Conflict Between its Owners Since 2001.

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Radar Bali reports that the Denpasar District Court has approved the petition of a part owner of the Bali Sani Hotel to be allowed to sell the hotel at public auction. Ruling on May 14, 2009, judge Istining Kadariswati, affirmed the right of Lie Thien Ping to auction the hotel and also ruled that the defendant, Soeharjo Gondo, had violated the law by attempting to run the hotel unilaterally and by selling five vehicles owned by the company.

The judge dissolved the joint ownership of both the Hotel Grand Bali Sani Suites and the Hotel Bali Sani Padma, granting Lie Thien Ping the right to sell the hotels, land, furniture, inventories and other items via auction. The judge also fined Soehardjo Gondo and affirmed the current seizure of the hotels assets.

Trouble at the hotels date from 2001 when Surabaya businessmen Soehardjo Gondo and Lie Thein Ping purchased the hotel together with Hendy Setiawan of Bali from the Bank Restructuring Agency. The value of that transaction was Rp. 23 billion (US$2 million) with management of the hotels to be handled by PT Sani Mitra Lestari. Based on the respective investment of each party, Soehardjo Gondo was issued 45% of the available shares, an amount equal to the shares held by Lie Thien Ping. The remaining 10% of the shares were issued to Hendy Setiawan.

Relations between Lie and Soehardjo soured over time, with Soehardjo taking over the management of the hotels, reportedly without consulting the remaining two shareholders.

In his successful efforts to regain his share of the hotels, Lie Thien Ping also filed a civil suit against Soehardjo and a criminal complaint with the police alleging malfeasance and providing false statements.

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