Search

×

Another surprising twist in Amanresorts story

The ongoing drama over the control of ultraluxury Amanresorts has taken yet another turn. The High Court in London on Monday preliminarily ruled that Adrian Zecha, founder of Amanresorts, shall be reinstated as CEO of Amanresorts’ parent company Peak Hotels and Resorts Group Ltd.

The High Court injunction followed Vladislav Doronin, who has a controlling interest in the company, taking control from Zecha, 81, as CEO in April. A press release from Zecha’s camp said “the court was critical of Doronin’s conduct and found that his attempt to crown himself CEO without board approval was unlawful and in violation of his joint venture agreement with international entrepreneur Omar Amanat.” Multiple reports have said Zecha was subject to intimidating conduct, having been locked out of his Singapore home as well as his office as part of the disagreement.

A telephone call on Tuesday to HOTELS from a member of Doronin’s team offered a response that “it is business as usual and Mr. Doronin is convinced he will win the argument on appeal. This is a temporary measure and he is reassuring his staff that he will prevail.”

Doronin, founder of Moscow-based real-estate development firm Capital Group, said in a statement the he will “continue to strongly challenge the underlying facts of this matter, with which we unequivocally disagree. We look forward to a full hearing on the issues when we will have the opportunity to present our case.

“I made my much needed investment into Aman Group at a critical time for the business and we are already making solid progress on necessary improvements in line with my strategic aims for the future of the company,” Doronin continued. “Many more tough decisions lie ahead but as the majority owner the financial success of the business and the integrity of the brand remain my priority.”

The court’s ruling said the company couldn’t take any steps to remove Zecha as CEO until July 31 (or such time as he is replaced by the Board of Directors if later). To Zecha’s benefit, two of the board’s four directors are controlled by Amanat.

Amanat said in a press release, “I am delighted that Adrian is now back in charge. He will remain in charge until such time a suitable successor can be found. It is essential to me that Adrian retires in a manner of his own choosing, which requires that his loyal staff, who have helped build up Aman into what is, are looked after. The Aman brand and the legacy of Adrian Zecha are and shall forever be inextricably linked.”

Amanresorts was bought from its previous owners, Indian real estate company DLF Group, in a US$358 million deal in February by a joint venture between Amanat and Doronin, in which Omar Amanat has 35% of the common shares and 15% of the profit share while Doronin has 50% voting power and 65% passive shares. As part of the deal, Zecha was reportedly to remain as CEO and have a minority interest.

In April 2014, Doronin, reportedly acting through his company Tarek Investment Ltd., appointed himself as CEO.

Peak Hotels and Resorts Ltd., Amanat’s company, responded to the issue by pursuing High Court proceedings.

In her judgment released on July 14, High Court Judge Catherine Newman QC held that Zecha’s “personal identity and vision is relevant to the performance of his function and the reputation enjoyed by the brand” and that “Mr. Zecha was the choice of CEO of both parties of the JVC and his exclusion… appears to me to be a clear breach of contract… Mr. Doronin has no proper basis for calling himself CEO.”

Zecha said Tuesday from his home in Singapore, “I welcome the Court’s ruling and am grateful to have an opportunity to ensure that Amanresorts, a company for which I have loved and nurtured for the last two decades, will continue to be a world-class brand with a devoted following. I remain committed to Aman’s growth, while also preserving its spirit.”

Comment