Thursday 18 Apr 2024
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PUTRAJAYA (May 28): The Court of Appeal has granted a subsidiary of Singapore-based Hatten Land Ltd, MDSA Resources Sdn Bhd, an interim protection order to restrain its creditors from taking action against it.

The court granted MDSA Resources the interim order yesterday pending the hearing of the company's appeal against the High Court's decision rejecting the sanction of the company's scheme of arrangement with its creditors.

The bench, comprising Justices Datuk Lee Swee Seng,  Datuk Lee Heng Chong and Datuk Hashim Hamzah, earlier heard submissions from counsel Lee Shih of Lim Chee Wee Partnership, for MDSA Resources.

Hatten Land announced in July last year that MDSA Resources and another subsidiary, MDSA Ventures Sdn Bhd, would be restructured as part of its initiatives to strengthen the resiliency of the group's business following the impact of the Covid-19 outbreak.

The move is aimed at strengthening the group's balance sheet, and will see the two companies restructure their legacy contractual obligations to achieve a more sustainable capital structure.

At the meeting of the creditors for the scheme arrangement, 90.4% of the total value of the scheme creditors present and voting in person or by proxy voted in favour of the proposed scheme of arrangement.

However, the High Court later dismissed MDSA Resources' application for sanction of the scheme of arrangement.

MDSA Ventures had earlier this year successfully completed its scheme of arrangement with its creditors.

Meanwhile,  in a statement filed with the Singapore Exchange, Hatten Land confirmed that the Malaysian Court of Appeal has granted an order to "restrain any proceedings from being commenced or continued by any of the scheme creditors against MDSA Resources pending the resolution of MDSA Resources’ appeal".

The appeal was filed on Feb 22 and the date for its hearing has not yet been set, the group said.

"The board will make the relevant update announcement in relation to the foregoing as and when there are material developments," the group's executive chairman and managing director, Datuk Colin Tan June Teng, said in the statement.

Edited ByS Kanagaraju
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