Maldives civil court has sanctioned the liquidation of Dholhiyadhoo resort in Shaviyani Atoll if Dholhiyadhoo Investment fails to repay the loan taken from Bank of Ceylon (BOC).
Dholhiyadhoo Investment had acquired a USD8 million from BOC and the figure had ballooned to USD11 million with interest over failure to repay the loan.
The Court ordered Dholhiyadhoo Investment to pay back the loan within seven months. The sentence further says that if the loan is not paid within the seven month window, then BOC will get the right to sell Dholhiyadhoo island which was put down as collateral.
The court further gave responsibility of all costs involving the liquidation of the resort to the company, further stating if the island sells short of the total due, the company would still be required to pay the amount holding the loan guarantors liable for repayment.
One of the guarantors of the loan includes former lawmaker Ahmed Hamza.
