16 Apr 2010

Rogue joint venture partner causes more problems

7:08 am on 16 April 2010

A rogue joint venture partner is causing more headaches for a major hotel chain.

Millennium & Copthorne Hotels says its joint venture partner, who has already seized control of an office, sacked personnel and sold key assets, has disposed of more properties without permission.

Earlier this week, the company said its partner and former manager, who had a 20% share in the property development company, sold a hotel and a resort development in China, despite his management rights being cancelled.

Millennium says it's now found out two further assets have been sold - a unit which owns development land, and one which runs a landscaping business.

The company says its exposure is about $2.5 million.

The company says it's trying to cancel all of the unauthorised sales and safeguard the assets that remain, but can't rule out that other sales may have been made.