KUALA LUMPUR: Country Heights Holdings Berhad (CHHB) says it is working hand in glove with the Malaysian Department of Insolvency (MdI) to resolve the winding-up status on Mines Waterfront Business Park Sdn Bhd (MWBP) and return it to solvent status.
The group hopes that the Official Receiver (O.R.) will expedite the verification and admission (or rejection) of the submitted Proofs of Debt (PoD) from the unsecured creditors so it can promptly settle the valid outstanding debts.
According to CHHB, there were 23 separate PoDs filed against MWBP, amounting to RM3.8 million in total, claimed by various creditors, inclusive of the official administration charges mandated by the O.R.
"The CHHB Group has faith and trust in the administration of the O.R., and we have already deposited 10 per cent of the total PoD as of February 2024, amounting to RM380,000, while waiting for the final admission of PoD," it said in a statement today.
As of May 31, 2024, the total receivables from MWBP tenants amount to nearly RM6 million, with the largest debtors being 23 Century International Life Science Sdn Bhd (nearly RM4.8 million) and KSF Holdings Berhad (RM1 million).
"We will ensure that its legal counsel secures the necessary legal means to protect and safeguard the group's interests in this matter, especially with regards to 23 Century International, who are also under scrutiny from the O.R. to settle their outstanding rental towards the MWBP estate under their administration," it said.
CHHB said that as a wound-up company, MWBP has no powers to actively pursue the recovery of these debts, but through the group's legal counsel, it is working hand in hand and has filed for a sanction from MdI to file suit against the tenants for this purpose.
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, CHHB said.
MWBP is the beneficial owner of assets valued at RM196 million (book value) as of May 9, 2023.
On May 9, 2023, the High Court in Shah Alam had issued a winding-up order on MWBP. This order followed an unsuccessful attempt to reconcile with Amy Siew, who had purchased a deluxe suite in Block D of Mines Waterfront Business Park, located within Mines Wellness City.
According to CHHB, Siew terminated her sales and purchase agreement and subsequently won her legal suits, securing a judgment amounting to nearly RM1 million against MWBP.
This led to the winding-up order under Section 465 of the Companies Act 2016.
CHHB had said that although Siew had earlier accepted a settlement offer of RM900,000 and received a 10 per cent payment as a show of good faith, the settlement was abandoned for unknown reasons on her part.
It said that due to the pandemic outbreak which affected our cash flow, MWBP faced ongoing issues servicing an Islamic loan facility from MBSB Bank.
This winding-up order against MWBP brought about unprecedented challenges, forcing the company to cease operations and submit to administration by the MdI.
"Complying with MdI's procedures is complex and technical, as many aspects of the business had to be considered. Almost all the unsecured creditors rallied together to compel the first creditors meeting, which took place in January 2024 at the Selangor office of the MdI, chaired by the assistant O.R.
"MWBP is aware of certain parties attempting to take advantage of the company's financial difficulties and working against it and the laudable efforts of MdI by filing PoD even though MWBP has 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," CHHB said.
It added that negotiations have been ongoing since September 2023.