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Shareholder sues operator of bankrupt Chiang Mai luxury resort

Feb 11. 2021
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By The Nation

In another twist in the saga of a bankrupt luxury resort in Chiang Mai, its operators are being sued by a shareholder for allegedly transferring revenue.

Champa Phongam filed complaints to the Department of Business Development (DBD) on Thursday, urging it to revoke the juristic-person status of three companies which operate Dhara Dhevi Hotel Chiang Mai.

He said he has a stake in the three companies, namely Dhara Dhevi Hotel, Dhara Dhevi and APK Development.

He added that he had filed a lawsuit against Dhara Dhevi Hotel with the Chiang Mai Provincial Court, accusing the company's directors of transferring revenue to third parties, causing him to suffer serious damage.

"I have submitted a letter to the DBD to revoke the juristic-person status of the three companies because the directors have not submitted financial statements for three consecutive years," he said. The three companies had also failed to submit income tax returns to the Revenue Department, he claimed.

Revoking the three companies’ status would help secure shareholders' benefits by preventing the companies from selling or transferring assets, or receiving any benefits, he said.

Dhara Dhevi Hotel Chiang Mai opened its doors in 2002 as one of Thailand’s top luxury resorts, with 123 rooms sprawling across 153 rai (24.5 hectares). The hotel closed down in November last year after business was badly hit by the Covid-19 outbreak.

The Legal Execution Department planned to auction off the hotel at a reserve price of Bt2.116 billion, but the operator claims the Dhara Devi is worth Bt3.728 billion. The auction is on hold pending a valuation by the Chiang Mai Provincial Court.

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