KUALA LUMPUR (Dec 15): Country Heights Holdings Bhd said MBSB Bank Bhd is seeking to sell two pieces of land belonging to its subsidiaries through a public auction over the subsidiaries' default on the payment of Islamic term financing facilities.
In a bourse filing on Friday, Country Heights said MBSB is seeking the High Court's approval to sell the two pieces of land, which are charged to MBSB by the property developer's indirect wholly-owned units, Mines Waterfront Business Park Sdn Bhd (MWBP) and Mines International Exhibition Centre Sdn Bhd (MIEC).
MBSB is seeking a claim amounting to RM89.67 million from MIEC, and RM91.44 million from MWBP, said Country Heights.
The group said MBSB is seeking permission from the court to be allowed to make offers during the auction and set aside the owed amount from the purchase price, while costs incurred in the execution of the sale are to be paid by MIEC and MWBP from the auction proceeds,
Country Heights said the Shah Alam High Court has fixed Jan 9 and 10, 2024 to hear the cases.
Country Heights had announced its default on the payment of the RM89.67 million financing facilities in August. The default is in respect of a charge created as security for an Islamic term financing facility and a bridging financing facility.
Country Heights had attributed the default to differences in cash flow timing due to delays in client payments, resulting in a temporary cash-flow constraint.
The group also said the default was linked to a winding-up petition issued against MWBP, which led to MBSB recalling the financing facilities granted to MWBP.
Shares in Country Heights settled 0.5 sen or 1.47% lower at 34 sen, giving the group a market capitalisation of RM99.83 million.