Three islands mortgaged against Heavy Load’s USD 29.5M debt cleared for sale

The Civil Court has authorised the Bank of Maldives (BML) to sell the head lease rights to three islands in Laamu Atoll, which were mortgaged against a USD 29.5 million (approximately MVR 455 million) debt owed by Heavy Load Maldives.

In an order issued on October 28, the court approved the sale of the head lease rights to L. Fares, including the resort under development on the island, as well as the head lease rights to L. Boduhuraa and L. Kudafares.

The properties were mortgaged to BML by Heavy Load Maldives Private Limited, together with former Parliament Deputy Speaker Moosa Manik (Reeko) and individuals Mudhrikath Moosa, Migdhadh Moosa and Bushainath Moosa.

According to the court order, Heavy Load Maldives failed to settle the outstanding debt following a 2020 Civil Court judgment. The amount owed had reached USD 29,500,217.87 as of October 25. When the bank sought permission to sell the mortgaged properties, the debtors raised no objections and agreed to the sale.

Taking into consideration a valuation report prepared in accordance with a High Court ruling, Judge Rizmeena Idrees authorized the sale of the mortgaged assets over a three-month period, subject to the following reserve prices:

First month: The initial sale price is set at USD 46,633,000 (forty-six million six hundred and thirty-three thousand).

Second month: If the assets remain unsold during the first month, the price will be reduced to USD 40,820,000 (forty million eight hundred and twenty thousand).

Third month: If the assets remain unsold after the second month, the minimum authorised sale price will be USD 38,779,000 (thirty-eight million seven hundred and seventy-nine thousand).

The court further ordered that if the assets are sold within the authorised period, BML must submit all relevant transaction details and deposit the proceeds with the court within 10 days of completing the sale. If the assets remain unsold after the three-month period, the bank must notify the court within 10 days of the deadline.