Ayuyu recommended as Pacific Gardenia’s receiver

The Commonwealth Development Authority has reportedly recommended businessman Joe Ayuyu to become the receiver of the Pacific Gardenia Hotel.

The recommendation came out after the federal court junked the bankruptcy petition initiated by Ronald Sablan, president of Sy’s Corp. that operates the hotel.

Superior Court presiding judge Robert Naraja ordered the appointment of a receiver to take control of the corporation’s assets and business last Sept. 9 and scheduled a hearing to decide on the identity of the receiver from nominees on Sept. 13. The bankruptcy petition in federal court, however, temporarily halted the receivership proceeding.

In a media statement, Sablan said he was not opposed to the recommendation to appoint Ayuyu as receiver, adding that he could work with the latter.

“But the imposition that I will be removed completely and not be allowed on the premises is counter-productive and downright insulting,” Sablan said.

“Let’s remember that I am an owner of this corporation and I have the deepest interest in making this company work and [become] viable,” he said. “The best way to get the business back on its feet would be [to] work together and [share] our knowledge. All along, I’ve wanted to talk about how to improve the business with CDA, but have been denied the opportunity.”

Sablan said that, while Ayuyu is acceptable to him as the hotel’s receiver, he disagrees with the proposal to compensate the businessman $100 per hour and a commission of “10 percent of increased revenues.”

He also disagreed with the proposed $7 per hour rate for Ayuyu’s accountant, saying that the proposed fees would further hurt the hotel’s cash flow.

Sablan claimed that the company presented various options to pay its debts and settle a delinquent loan but was never given an opportunity to negotiate this matter.

“We were not given a fair opportunity to work together because CDA was misled by a former officer, along with some disgruntled ex-employees who are hoping to take over the business,” he said.

He refuted allegations that he took property belonging to the company. His own sister, Jeanette Sablan Yamashita, who claims 45 percent ownership of the shares in Sy’s Corp., accused Sablan of pocketing business revenue for his personal benefit.

“I would like to clear my name on these false and damaging accusations. The only items I’ve ever removed from my office are family records and personal belongings that were not related to the company,” Sablan added.