The board of directors of Banyan Tree Holding Limited (BTH) have filed a winding-up petition against Al Areen Holding Co, the owner of Banyan Tree Bahrain, following an alleged non-payment of more than US $1,000,000.

Although BTH said it “remained committed” to the GCC and would “continue to seek opportunities”, the company added in its statement it needed to find “like-minded partners”.

BTH is also taking legal action against Meydan LLC for “for various breaches” of the management contracts for two Dubai hotels the company was expected to operate.

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Al Areen Holding was unavailable for comment before publishing.

Statement sent to HotelierMiddleEast.com in full:

“The Board of Directors of Banyan Tree Holding Limited (‘BTH’ or ‘Company’ ) wishes to announce its wholly- owned subsidiary, Banyan Tree Hotels& Resorts Pte. Ltd. (‘BTHR’) has filed a petition in the Kingdom of Bahrain to wind-up Al Areen Desert Spa and Resorts Holding Company B.S.C. (closed) now known as Al Areen Holding Co. B.S.C. (closed) (‘Al Areen’), which is the owner of Banyan Tree Bahrain, for an outstanding debt of $1,122, 000 that Al Areen failed to pay BTHR pursuant to the Hotel Management Agreement dated march 19, 2005 (HMA) and Settlement Agreement dated November 17, 2009 between Al Areen and BTHR.

“It is common knowledge that the financial crisis has impacted several entities in the Middle East; to a certain degree, it has affected some of our hotels. We endeavour to operate with the highest standards, and if we are unable to settle issues amicably, we need to defend our own credibility and as a matter of principle, take a firm position with regards to any breaches and outstanding debts.

“While we remain committed to the GCC region and will continue to explore opportunities, it is very important that we find like-minded partners who sincerely share our vision and demonstrate a commitment to the Banyan Tree brand experience. Our plans to open in other parts of the Middle East continue to be on track. In January this year, we soft-opened Banyan Tree Al Wadi, a 101-key desert, beach and golf resort in the Ras Al Khaimah emirate north of Dubai. There are also five other projects under development in Abu Dhabi, Egypt and Oman”