|By Rebecca Torr, Gulf Daily News, Manama,
BahrainMcClatchy-Tribune Regional News
April 19, 2010 --AN out-of-court settlement appears unlikely in a dispute at one of Bahrain's most exclusive hotels.
Banyan Tree Hotels and Resorts (BTHR) is taking Al Areen Holding Company, which owns the luxury property in Sakhir, to court for allegedly breaching its management contract.
Banyan Tree Holdings group managing director Ariel Vera revealed the dispute had even led to some staff being paid late.
"Several staff didn't get paid on time," he admitted to the GDN yesterday.
The dispute centres on payments that should have been made to BHTR by Al Areen in return for managing the property.
However, three BTHR employees -- one Indian, one Canadian and a Turk -- are now subject to a travel ban after a complaint was filed against them at the Public Prosecution.
"The Public Prosecution is making an investigation and depending on the outcome will or will not file charges," said Mr Vera.
"We are not aware why they are being held by the ban."
Neither Al Areen nor its lawyers have the power to impose a travel ban, which is imposed by relevant authorities with proper jurisdiction, Al Areen Holding Company CEO Tariq Al Jowder said.
He said Al Areen had nothing to hide and he would be happy to have the dispute decided by the courts.
The hotel has since been renamed the Al Areen Palace and Spa after BTHR pulled out of its Hotel Management Agreement (HMA).
Al Areen has since threatened to launch legal proceedings of its own against the luxury resort operator, claiming it had not fulfilled its obligations in its contract.
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