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Peggy Sito

The sale of Lai Sun Hotels International's Four Seasons Hotel in New York hinges on the outcome of a lawsuit lodged by a United States company, according to executive director Victor Yang Hung-ping.

 After Lai Sun Hotels' annual general meeting yesterday, Mr Yang said that the company had not received the balance of proceeds from the sale due to litigation by a third party.

 In February, Lai Sun Hotels announced it had netted US$137.5 million from the sale of its 49.99 per cent stake in Four Seasons Hotel.

 The sale was expected to help the company reap an exceptional profit of HK$230 million for the year to December 31.

 American Realty Trust, controlled by Dallas real-estate operator Gene Phillips, in December maintained in a lawsuit in New York it had made a US$2 million down payment and had signed a letter of intent in October to buy the hotel for US$270 million.

 American Realty filed for an injunction barring Lai Sun from selling the hotel to anyone else. It also commenced a separate suit in Texas early this year.

 Both courts denied the motion to discontinue the sale and the US company filed an appeal.

 Mr Yang said the litigation was expected to be settled within a few months.

 Lai Sun Hotels bought the hotel in partnership with four other parties for US$190 million in 1997.

  The partners were Hong Kong Parkview Group, Manhattan Garments Group, Amecor Group and Sunnet Investment Group.

MEETINGS 



Sale of Lai Sun hotel in US court