Hundred of former staff of the Aston Bali Resort & Spa on Tanjung Benoa demonstrated at the Denpasar Court on Tuesday, October 12, 2010, to protest the legal execution of a take over of the hotel by its new owners.
According to Kompas.com, a shoving match ensued between the enforcement team and the demonstrators that resulted in the arrest of 3 demonstrators and two legal representatives of the hotel former owning company PT Dewata Royal International ( DRI ).
The demonstration was preceded by heated negotiations in front of the hotel at Tanjung Benoa with demonstrators physically trying to prevent the enforcement team from taking possession of the hotel. The executors of the possession order eventually managed to read the court order inside the lobby of the hotel.
DRI is remaining steadfast in their position that the takeover is illegal because the case is still in appeal before Indonesia's Supreme Court. Gewang, a representative of DRI , speaking at the takeover said: "This execution is not correct; it is only based on an auction order and does not have the force of law. The execution is premature."
PT Karya Teknik Hotelindo who have purchased the hotel through a court-ordered auction maintain the execution is consistent with the orders of the Commercial Court in Surabaya. Widodo, the Director of Karya Teknik Hotelindo said: "The entire legal process is finished. The execution must be done; there is no further legal step that can be taken by PT DRI, making the decision of the Court final."
The legal case centering around the Bali hotel which is still managed by Aston Hotels traces back to a US$14 million loan made by Bank Exim (now Bank Mandiri) to DRI . The dollar denominated load was converted into Rupiahs. When it came time to repay the loan, Bank Mandiri requested repayment in dollars, while DRI refused, insisting they be allowed to repay the loan in Rupiahs.
The ensuing legal battle wound its way through the commercial courts of Surabaya during which DRI was officially declared bankrupt forcing the court-ordered auction of the property to PT Karya Teknik Hotelindo.
[Update: Labor Woes at Aston Bali Resort and Spa]
[Labor Woes at Aston Bali Resort and Spa]
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