The Civil Court permits the sale to sell off Zitahli Dholhiyadhoo Resort in Shaviyani Atoll, of which former MP Ahmed Hamza's company AAA Maldives holds shares.
The collateral agent for the resort's sale Liberum Chambers gave notice after the resort owners failed to repay loans acquired from Bank of Maldives (BML), State Bank of India and Bank of Ceylon. The loans were taken after the resort was mortgaged.
Hamza sought loans for the lease of Dholhiyadhoo with several members of his family and VA Pvt Ltd, a subsidiary company of AAA, listed as guarantors for the loans. The sale of the island was announced through the bidding process opened by the city, starting at USD 42.8 million.
The proposal to participate in the bidding process must be presented to the ‘locked box’ in the Bank of Ceylon. In addition to a letter requesting to take part in the process, participants must provide an earnest money deposit (EMD) of USD 10,000. Letters will be opened on April 4.
Should more than one party apply, the island will be sold to the highest bidder onwards of USD 50,000.
The five-star resort and spa features a total of 100 rooms of which 65 are water villas. Kuda Funafaru, previously owned by AAA, was also similarly sold off.