Saturday, November 11, 2006 Buyers ask PNB, resort owners to end legal row
A consortium of Korean investors, which has expressed interest in buying a defunct resort in Lapu-Lapu City, has appealed to the Philippine National Bank (PNB) to end a legal battle and come up with a compromise agreement with the original owners of the establishment.
Chang Nam Moon, speaking in behalf of a Korean consortium, said in an interview that the group is “very much interested” in buying and operating the resort due to the influx of Korean tourists in Cebu and the growing number of retirees in Korea and Japan.
“We plan to resume operations of the resort for the retirees in these countries. We are also planning to attract the Chinese retirees,” he said.
Moon said the consortium, which has a working capital of about $200 million, has sent PNB in 2004 yet a letter of intent to purchase Coral Reef.
“We did not receive a response. Now, we are reviving our interest in the resort,” he said.
PNB took over the ownership of Coral Reef after Palm Tree Estate Inc. and Bel Air Golf Inc. failed to pay a $420-million loan incurred by the two companies in 1997.
Romulo Senining, legal counsel of Palm Tree Estate Inc. and Bel Air Golf Inc., said the Korean consortium is just one of many interested buyers of Coral Reef whose interests have been affected by the pending case filed by his clients against PNB.
Mortgage
Palm Tree Estate was the operator of the Coral Reef Resort while Bel Air managed the golf club. Both companies filed a case in 2001 to nullify the property’s mortgage with PNB on allegations of vague loan agreements.
Senining said his clients are willing to enter into a compromise agreement with PNB.
He said a possible compromise between PNB and his clients would be for the bank to allow Palm Tree Estate to reopen the resort after partial payment of its debt.
The rest of the loan would have to be paid on installment basis, he said.
“As long as the resort will earn. It would not be a problem,” Senining said.
Kenichi Akimoto, pre-sident and chairman of Palm Tree Estate and Bel Air, said many will benefit if Coral Reef resumes operations.
“Unpaid former employees will be paid and can have their jobs back. The host community will also stand to gain (through) the resort’s community outreach programs,” he said.
He said his clients had issued a legal notice informing the public, especially prospective buyers, to beware of the property as it is the subject of pending litigation.
The resort started operations in 1989. It was foreclosed by the PNB in September last year. (JBN)
