Volume No. 2 Issue No. 46 - Tuesday July 15, 2008
Layou River Hotel Development in Litigation in British Virgin Islands
New York, NY July 11, 2008 – Continuing plans to develop the Layou River Hotel and Clark Hall Estate have been halted because of litigation in the High Court of the British Virgin Islands, brought by Rich Victory Investment Limited, a company formed by Dominica's Ambassador to China, Mr David Hsiu.
Rich Victory seeks to liquidate and thus bring an end to Shangri-la International Development Holding Limited, the joint venture company formed to develop the Clark Hall Estate. Although Rich Victory transferred 51% of the shares of Shangri-la to the Dominican Government in 2006, its liquidation lawsuit failed to include the Government as a party.
As a result, Mr Felix Chen, President of Sino Union (the other major shareholder in Shangri-la), filed a rectification lawsuit to request that the BVI court recognise the Government’s majority ownership of Shangri-la’s shares, thus permitting the Government to fully oppose liquidation of Shangri-la, as it intends to do.
Evidence in both cases has been filed and includes challenges by Ambassador Hsiu and Mr Kieron Pinard-Byrne to the Prime Minister’s evidence confirming the Government’s shareholding in Shangri-la, while Rich Victory now claims that its transfer of shares to the Government was conditional.
Rich Victory, supported by evidence of Ambassador Hsiu and Mr Pinard-Byrne, seeks to put an end to Shangri-la and its plans for developing Clark Hall Estate, after Sino Union paid Rich Victory US$20 million for 40% of Shangri-la’s shares and the right to participate in developing Clark Hall Estate.
Mr Chen and Sino Union seek to develop a world class hotel and other uses for Clark Hall Estate, bringing to Dominica much needed jobs, currency, and international tourism. Mr Chen and Sino Union are working with the Government to stop the attempt by Rich Victory, supported by Ambassador Hsiu and Mr Kieron Pinard-Byrne, to put an end to Shangri-la and the development plans.
Once the litigation is over, we are in the position to immediately begin developing Clark Hall Estate and bring a world-class hotel to the island. We are eager and keen to work closely with the Dominican Government and share with them our vision by working on the existing plans” said
Mr Felix Chen Chairman and President, Sino Union.
The BVI court has not yet fixed a date for the trial of these proceedings: BVI Claim Number BVIHCV 2008/0053 and BVI Claim Number BVIHCV 2008/0076.
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Claudine P. Moore
Director Marketing and Business Development, US
Hill & Knowlton New York
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