KUALA LUMPUR: Avillion Bhd is disputing claims over its continued occupation of Villa Cinta in Bali, Indonesia, with a claimant proposing deductions totalling 9.0 billion rupiah (about RM2.3 million) from outstanding financing arrangements.
In a filing with Bursa Malaysia, the hospitality company said its subsidiary, PT Avillion Indonesia, had received a letter from solicitors representing Shirley Winarso, who claims ownership of the land on which Villa Cinta is situated.
Winarso alleges that Avillion Indonesia’s lease over the property expired on Jan 15, 2026, without renewal.
She has also raised claims relating to outstanding rental payments and other obligations arising from the subsidiary’s continued occupation and use of the property after the lease expired.
The proposed settlement includes deductions of about 4.89 billion rupiah for unpaid rent, continued occupation, repairs and related costs, as well as a further discount of about 4.11 billion rupiah on loan repayment.
However, Avillion said its subsidiary had disputed the allegations and claims in its response to the claimant’s solicitors while expressly reserving all its rights.
“The company is currently seeking legal advice and reviewing the allegations and claims set out in the letter.
“As at the date of this announcement, no legal proceedings have been commenced against Avillion Indonesia and/or the company.
“The board will take all appropriate steps to defend the company’s position and protect its interests,” it said.
Avillion added that the proposed claims remain subject to verification and adjustment, making their potential financial impact uncertain at this stage.
Villa Cinta had a net book value of about RM11.2 million as at March 31 and forms part of the company’s hospitality assets in Indonesia.
The company expects to incur legal and professional fees in connection with the dispute but said no provision had been recognised in its financial statements for the matter.
Based on currently available information, Avillion does not expect the dispute to have a material financial or operational impact.