A HOTEL has sued another hotel for alleged non-payment of an $800,000 loan.
Changshin Resort Saipan Corp., owner of Riviera Resort Club Saipan, sued Saipan Koresco Resort Club for alleged breach of contract and “oral promise to pay.”
Riviera Resort, through attorney Danilo Aguilar, asked the Superior Court to order Saipan Koresco Corp., which operates Koresco Resort, to pay the balance of the agreement plus interest.
No one at Saipan Koresco was available for comment yesterday.
In May 1994, according to Aguilar, Changshin representatives entered into an oral agreement with Koresco agents in which Changshin agreed to lend Koresco money as short term loans.
Aguilar said based on the terms of the oral agreement, the parties agreed that Koresco would repay the loans on a periodic basis when it had financial resources to make the payments.
Aguilar said as of Nov. 1994, Koresco owed his client $1,098,805.
He said the defendant made a series of payments in 1995 and a payment of $128,805 in April 1996, but did not remit any other payments after that date.
As of April 1996, the defendant had an outstanding balance of $800,000, Aguilar said.
He added that his client received a written letter from the defendant’s former corporate secretary, Ick Seon Kim, reconfirming the existence of the loan and admitting that the amount owed was $800,000.
Aguilar said his client requested for payment last January, but the following month, the defendant’s representatives sent a notification stating that the defendant did not acknowledge the existence of any loans and denied any liability to pay the balance.
