Japanese resort owner vows to pay workers

The former owner of defunct Coral Reef Resort vowed to properly compensate its unpaid employees if the court grants its wish to take back the property's ownership from the Philippine National Bank (PNB).

Palm Tree Estate Inc. and Bell Air Golf and Country Club chairman of the board Kenichi Akimoto said he is willing to pay each of the unpaid employees of the company, once he is able to sell the 36-hectare Coral Reef Resort to the interested Korean buyer.

Akimoto is now fighting to retrieve ownership of the property from PNB, claiming that the bank's foreclosure last year was illegal.

When the Resort closed in 2001 due to heavy loan exposure, employees had been fighting to get their salaries. Some reportedly were not paid for months.

In an interview with Akimoto he said that no one will be left unpaid, if he is able to dispose the property to the interested Korean buyer Sea Born and Fil Kotchi consortium.

A former executive from Coral Reef Resort interviewed by The Freeman, who requested anonymity, said Akimoto owed millions of pesos to his former employees, especially those who continued to serve with the company although monthly salaries were given in a staggered basis.

Palm Tree Estates Inc., and Bell Air Golf Country Club is asking the Regional Trial Court (RTC) in Lapu-Lapu City to cancel the title issued already in favor of PNB.

The company was able to secure a loan from PNB in 1997 of P340 million, and second loan of P80 million, for the development of the resort's expansion to build condominiums and exclusive golf club.

The construction of the expansion project started in 1994. The company was granted the loan three years later while the economic crisis hit the Asian region, affecting badly the Philippine economy. PNB reportedly released the loans in tranches which crippled the company's ongoing project that time.

"We had to close the resort's operation and stop the ongoing construction because of lack of funds in 2001," said Palm Tree Estate Inc. and Bell Air Golf and Country Club chairman of the board Kenichi Akimoto.

The Coral Reef Resort started operation in 1989 Akimoto said the company had invested about US$20 million to US$30 million for the entire development of the 50-room high-end resort.

Because of its strong interest to immediately start a development of the property, Sea Born and Fil Kotchi consortium representative Chang Nam Moon urged PNB to pursue a compromise deal with Akimoto's group.

While there is a case ongoing, any interested buyer can not negotiate either with the PNB or the former owner companies led by Akimoto.