Yacht Tours reaches out of court settlement for Alidhoo and Kudarah

Yacht Tours has reached an out of court settlement for their case filed in Civil Court over the government’s cancellation of agreements for Haa Alif Alidhoo and Alif Dhaalu Kudarah resorts, the company owned by MP Abdulla Jabir has said.

The government terminated agreements for the two resorts in May this year, citing the company's failure to pay lease and fine charges.

The company released a statement stating that the out of court settlement was requested by the State and that the company has now recalled the Civil Court case. The Ministry of Tourism, Arts and culture has subsequently cancelled their notices of termination of contracts for the two islands, the Yacht Tours statement said.

The company stated that the government has also agreed to follow their earlier addendum, and for the Maldives Inland Revenue Authority (MIRA) to recall all their court cases against the company.

Yatch Tours said that the out of court settlement was agreed after the company came to an agreement with the government to recall the case, filed by the company, seeking damages for $30 million in damages for the government’s actions against Alidhoo and Kuradah.

The company said that the government has agreed to reinstate their previous agreement for the two islands, and to cancel all notices of termination sent by the Tourism Ministry.

Yacht tours said that the agreement was reached on 8th October 2013 and that the company has no pending payments to the government for Alidhoo and Kudarah, from that date forth, as per their settlement.

The government terminated the contracts for Alidhoo and Kudarah on 28th of May 2013 citing an outstanding debt of lease and fine payments of $7 million.