Court orders company to pay $22 million over Lonudhoohuttaa

Civil Court has ordered One and Half Degree Maldives to pay $22 million with accumulated interests, for defaulting on a $19 million loan granted by EXIM Bank of Malaysia to develop Gaafu Dhaalu Lonudhoohuttaa to an island resort.

Civil Court’s verdict on Thursday said the loan had accumulated to $22,027,704.02 as of 30 November 2011. Lonudhoohuttaa, an uninhabited island in the south of Maldives, which was also to be developed by One and Half Degree Maldives, was placed as collateral for the loan.

The court also said that EXIM Bank must receive an additional $65,000 spent on taking the matter to court and an extra $971,087 placed in the debt service reserve account.

Guarantee for the bank loan was provided by Ahmed Musthafa Ali of Sword, Hussain Solah of Fithuroanuge, Mohamed Nadheem of Kanboage, Ibrahim Naseer of Thibroazge and Mohamed Shafeeq of Shafeeqge.

The Civil Court verdict also states that EXIM Bank of Malaysia has the right to sell the investment in Gaafu Dhaalu Lonudhoohuttaa, if the default payment is not repaid within a period of six months.