Kadek Wiranatha Responds

(2/13/2010)

As reported on balidiscovery.com, there is an ongoing management dispute taking place between Made Kadek Wiranatha, the owner of the Breezes Resort and Spa in Seminyak, and Mountbatten Resort International (MRI), the management company that has been running the property since August 2008. [See: Foul Winds Blow at Breezes Resort]

Wiranatha Responds

To clarify the position of Wiranatha in the current dispute, his lawyers have issued the following points of clarification:

• On August 14, 2008, Wiranatha entered into an agreement with the owner of MRI that included a debt of US$3.5 million owed by Wiranatha to MRI that was to be paid before September 1, 2009.

• Failure to pay that debt by the above deadline would have seen the nominal amount of the debt due to MRI become US$4 million and provided an option to MRI to secure ownership of the 130-room resort for an additional payment of US$6 million.

• On August 12, 2009, Wiranatha settled the debt due MRI. The payment, made before the agreed deadline, eliminated the purchase option for the resort which, in the opinion of Wiranatha's lawyer, made null and void the purchase option.

• Wiranatha maintains that MRI has failed to pay the agreed lease payments for the 13th, 14th and 15th months (September, October, November 2009) and, by so doing, has put the resort in default of its lease agreement which provided for an 8 year lease on the property.

Wiranatha has asked MRI to vacate the premises and terminate its operation of the resort in a manner not to disturb the enjoyment of guests holidaying in Bali.