An ongoing dispute between an international hotel management company and a Balinese businessman has put the future operation of the 130-room Breezes Resort and Spa in jeopardy.
PT Mountbatten Resorts International (MRI) is reported to be preparing a civil suit against the hotel's owner, Kadek Wiranatha, in connection with a deal that allowed the company to manage the hotel under an eight-year lease. That agreement, entered into in August of 2008, reportedly allowed Wiranatha the right to sell the property to a third party anytime before September 1, 2009. The agreement further provided MRI with an option to purchase the hotel for US$10 million.
Recently, a payment of US$3.5 million from MRI to Wiranatha was refused, with the Balinese businessman asking the management of MRI to quit the property. Ignoring his request, in December 200, 100 men were sent by Wiranatha to forcibly eject the MRI managers and take possession of the hotel.
A Jakarta legal firm has served notice on Wiranatha demanding that he honor the terms of his contract while threatening him with criminal charges. In response, Wiranatha maintains that MRI has failed to make four successive lease payments, prompting him to evict them from the premises.
According to The Jakarta Globe, in response to complaints made by either MRI or Wirantha in the case, Police have visited the hotel and seized legal documents as evidence in the continuing proceedings.
Wiranatha's spokespeople claim that despite the legal wranglings hotel operations continue undisturbed.
Wiranatha is the founder of the now defunct Bali Air Paradise International Airline and number of successful dining and entertainment venues in Bali.
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