Report: Trump business fights Panama hotel eviction
Last Updated Feb 24, 2018 12:36 PM EST
PANAMA CITY—One of President Trump’s family businesses is battling an effort to physically evict its team of executives from a luxury hotel in Panama where they manage operations, and police have been called repeatedly to keep the peace, The Associated Press has learned. Witnesses told the AP they saw Trump’s executives carrying files to a room for shredding.
Representatives of the hotel owners’ association formally sought to fire the Trump management team Thursday by hand-delivering termination notices to them at the Trump International Hotel and Tower, according to a Panamanian legal complaint filed by Orestes Fintiklis, who controls 202 of the property’s 369 hotel units. Trump managers retreated behind the glass walls of an office where they were seen carrying files to an area where the sounds of a shredding machine could be heard, according to two witnesses aligned with the owners. The legal complaint also accused the Trump team of improperly destroying documents.
The witnesses spoke on condition of anonymity over concerns they would be drawn into an expensive and protracted legal fight.
The move comes after owners of the hotel tried to strip the hotel of the Trump name.
Elsewhere in the building, the hotel owners’ team and its allies were barred by Trump Hotel staff from entering the room containing the building’s closed-circuit TV system as well as key computer servers for the hotel and apartments that share the property. In response, they shut off power to the room — temporarily bringing down phone lines and internet connections within the building.
According to the legal complaint, Trump’s chief of security and six security guards “pushed and shouted at” the people on Fintiklis’s team who had come to deliver the termination notices.
A new confrontation appeared likely to arise during the weekend, as Trump’s security staff set up early Saturday in the hotel lobby, witnesses said.
Representatives of the Trump Organization did not respond to phone calls and emailed requests for comment, and the listed number for the hotel failed to connect. Likewise, Fintiklis did not respond to messages left by text or email.
On Friday night, lawyers, notaries and rival security personnel gathered at the hotel in Panama City while talks were underway to prevent the conflict from deteriorating further.
The showdown is the newest low in a months-long fight over control of the property. Last August, Fintiklis’s Miami-based Ithaca Capital Partners bought the 202 units in a fire sale from the property’s struggling developer. As part of the deal, Trump Hotels sought and received some assurances that Ithaca would not seek to act against its interests as hotel manager.
Relations quickly soured amid abysmal hotel occupancy numbers and allegations by Ithaca and other hotel unit owners of financial mismanagement or misconduct. In October, Ithaca Capital led a push to terminate Trump Hotel’s management contract and seek compensatory damages. Trump’s company — which he still owns but does not directly control — refused to hand over control of the property, arguing that the vote to fire Trump Hotels was invalid.
A Panamanian court declined to support that claim in December, and the parties have since been fighting in court. The AP reported in January that the Trump management team ran off a group of Marriott executives who had been invited to tour the property amid a search for a replacement hotel operator.
On Thursday, Fintiklis arrived at the property with management staff and attorneys intending to take over the hotel immediately. The Trump management team again refused to yield control of the property, and according to the legal complaint filed by Ithaca’s lawyers, refused to allow Fintiklis to check into any of his company’s 202 hotel rooms.
Horwitz reported from Washington.
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