TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

NEWS UPDATE Destination Properties Files Police Case Against Leh

Category: Hotels, Posted:04 Dec 2009 | 11:29 am

According to media reports in the Financial Times three senior KPMG executives of Lehman Brothers Hong Kong based liquidators have been requested to appear before the Thai Crime Suppression Bureau in Bangkok in relation to a complaint filed by Jake Vigoda, President of Destination Properties. The complaint alleges that KPMG failed to follow Thai Bankruptcy Law in its intended auction process of assets including hotel properties in Phuket and Cha Am which were recently being floated in the market by KPMG.
Its been estimated that Lehman's Hong Kong subsidiary holds over US$1 billion in assorted investment vehicles in Thailand with a number of these located in Phuket. Destination Properties holds 5 of these assets which it's ventured on with Lehman. As per the police complaint Destination claims that on the heels of its insolvency Lehman's was unable to fund its investment and hence is in default. According to industry analysts there is the opinion put forward that the current Destination case has been filed to prevent the auction process and allow the group leeway in resolving its cash flow issues.
At the same time leading Thai daily Transsettakit has published a story that over 100 contractors in various projects have filed lawsuits against Destination Properties alleging non payment in amounts exceeding THB 700 million. The report states the fraud charges have been filed by the contractors Prakanong Police Station. It goes on to state the promises were made on repayment of the debut but since then some have been offered accommodation vouchers instead, which they say does not help them make their own bank payments or cover expenses.
Two large international hotel chains are affiliated to the Destination Properties covered by these KPMG and contractor defaults, though neither of these has ownership stakes in the company. Expectations are for the current array of court and police complaints to continue as Thailand continues to be hit by the global economic recession and while occupancy rates are recovering, room rates look at be hard hit for the foreseeable future.

Other News

Read more

Phuket’s World Class Creative Mad Metal Men

Category: Tourism, Posted:15 Jan 2021 | 09:15 am The Underwood Art Factory with its crazy, cool, innovative metal sculptures and fabrication is one of the island’s best global exports to some of the leading design hotels around the globe. Founder John Underwood’s long-term work with renowned design guru Bill Bensley has seen his work showcased in countless iconic locations and properties. The Underwood […]
Read more

Travel Between Bangkok and Phuket Without Quarantine Allowed

Category: Tourism, Posted:13 Jan 2021 | 10:40 am There is currently a lot of confusion on whether travel between Phuket and Bangkok is allowed, and whether a 14-day quarantine is required. The Phuket Covid-19 Information Centre have posted in Thai language only that temporary visitation is allowed (not more than 14 days). Those coming from the maximum controlled areas, high-risk areas and four […]
Read more

Is A Forced Closure Order For Phuket Hotels Needed?

Category: Hotels, Posted:10 Jan 2021 | 18:18 pm On Saturday 9th January a new order from the Phuket governor that requires a 14-day quarantine for arrivals from Thailand’s ‘red zone’ areas has thrust the island’s hotel and tourism sector into unknown territory. The impact over the past week, post-New Year on travel to the island has methodically ground down airlift to the point […]