Civil Court of the Maldives has ordered Bank of Maldives (BML) to freeze the accounts of Sun Travel and Tours Private Limited over the charges pressed against the company by Hilton International. In addition to freezing the accounts, BML been instructed to send all details of Sun Travel and Tours bank accounts to the Civil Court.
Hilton International is seeking compensation from Sun Travel and Tours, after the company terminated the agreement signed with Hilton to operate Irufushi Resort. Singapore International Arbitration Centre had ruled in favour of Hilton International and ordered Sun Travel and Tours to pay USD 24 million to Hilton as compensation. Hilton has pressed charges against Sun Travel and Tours in Maldivian courts, after the company failed to pay the compensation amount specified by the Singapore International Arbitration Centre.
No party has disclosed the reason behind the termination of the agreement signed between Hilton and Sun Travel and Tours, owned by Parliamentarian Ahmed Siyam. The resort is currently operated under the Sun Siyam Brand.