KUALA LUMPUR (July 1): Country Heights Holdings Bhd (KL:CHHB) said on Monday that it is working closely with the Malaysian Department of Insolvency (MDI) to resolve the winding-up of its indirect wholly-owned subsidiary Mines Waterfront Business Park Sdn Bhd (MWBP) and return it to solvent status.
In a statement, Country Heights said there were 23 separate Proofs of Debt (PoD) filed against MWBP, amounting to RM3.8 million in total, claimed by various creditors, inclusive of the official administration charges mandated by the official receiver (OR).
To return MWBP to solvent status, the property developer said it is hoping that the OR will expedite the verification and admission (or rejection) of the submitted PoD from the unsecured creditors so it can promptly settle the valid outstanding debts.
"The Country Heights Group has faith and trust in the administration of the OR, and we have already deposited 10% of the total PoD as of February 2024, amounting to RM 380,000 while waiting for the final admission of PoD," it said.
Besides that, Country Heights is banking on its legal counsel to secure the necessary legal means to recover nearly RM6 million in total receivables from MWBP tenants. According to Country Heights, MWBP's largest debtor is 23 Century International Life Science Sdn Bhd (nearly RM4.8 million), followed by KSF Holdings Bhd (RM1 million).
"A full recovery of the rental arrears will provide finality to the winding-up, and MWBP will be in a position to settle all approved PoD and return to fully solvent status," it said.
The High Court in Shah Alam had in May 2023 granted a winding-up order against MWBP following an unsuccessful attempt to reconcile with Amy Siew, one of the purchasers of MWBP, who succeeded in her legal suits against the company to terminate the sales and purchase agreement. Siew secured a judgment amounting to nearly RM1 million against MWBP, leading to the winding-up order under Section 465 of the Companies Act 2016.
"Although Ms Amy Siew had earlier accepted a settlement offer of RM900,000 and received a 10% payment as a show of good faith, the settlement was abandoned for unknown reasons on her part," Country Heights said.
On top of that, MWBP was sued by MBSB Bank Bhd, arising from a default in payment on an Islamic term financing facility of RM82.7 million and an Islamic bridging financing facility of up to RM17.3 million.
‘Certain parties’ taking advantage of MWBP's financial difficulties
On this, Country Heights accused "certain parties" of attempting to take advantage of MWBP's financial difficulties and working against the company by filing PoD even though MWBP had settled their debts prior to the winding-up order.
"These irresponsible and unscrupulous parties are attempting to keep MWBP under winding-up and powerless to settle its debts, most importantly against our efforts to amicably resolve the ongoing negotiations with MBSB Bank to settle the outstanding Islamic financing facility, to which the MWBP complex and the Mines International Exhibition & Convention Centre (MIECC) have been charged as collateral. Negotiations have been ongoing since September 2023," Country Heights said.
Country Heights said that the board of directors and top management of MWBP are committed to resolving all the valid debts that have been admitted by the OR and MDI. "The company is seeking an international establishment to manage the company, with a deposit of RM70 million. If successful, this will amicably settle our issues with MBSB," it said.
"We are confident that despite certain parties with vested interests attempting to derail our efforts, we will persevere and successfully return MWBP to fully solvent and operational status before the close of the year," Country Heights added.
Shares of the company closed 0.5 sen lower at 29.5 sen on Monday, translating to a market capitalisation of RM83.51 million.