The Civil Court has granted Bank of Maldives (BML) permission to sell three mortgaged islands linked to Heavy Load Maldives over an unpaid USD 11 million (MVR 170 million) loan facility. The properties in question were pledged as collateral by the company, along with its primary shareholders, former Deputy Speaker of Parliament Moosa "Reeko" Manik and his three children.
Under the court order issued on the 28th of last month, the national bank is authorized to sell the islands of Fares, Kudafares, and Boduhuraa in Laamu Atoll within a designated three-month window. Fares and Kudafares currently operate as the Raha Resort property, while Boduhuraa is designated for agricultural use. The head leases for all three islands run until 2064.
The ruling follows a prolonged legal battle between the bank and the debtor company. While the Civil Court had previously cleared BML to auction the mortgaged islands to recover the outstanding balance, the High Court overturned that initial decision on appeal. The latest Civil Court order comes after Heavy Load formally consented to the sale and agreed to the pricing structure sought by the bank.
The court has established a phased pricing model for the auction across a ninety-day timeline. In the first month, bidding will commence at a baseline price of USD 46 million. Should the properties fail to secure a buyer during the initial round, the starting bid drops to USD 40 million in the second month, with a final floor price set at USD 38 million for the third month.
Heavy Load Maldives is an established local enterprise predominantly owned and controlled by Moosa Manik and his immediate family members. With the court order now formalized, BML is positioned to begin liquidation proceedings to recover the substantial delinquent credit facility issued to the firm.