Status of Winding-Up Order on Mines Waterfront Business Park Sdn Bhd

On May 9, 2023, the High Court in Shah Alam issued a winding-up order against Mines Waterfront Business Park Sdn Bhd (MWBP), a subsidiary of Country Heights Holdings Berhad, due to a legal dispute with a purchaser. MWBP faced cash flow issues exacerbated by the pandemic, leading to the winding-up order.

Efforts to resolve the situation include working with the Malaysian Department of Insolvency (MdI) and securing payments from tenants. MWBP aims to recover rental arrears and settle debts to return to solvency. The company’s assets are valued at RM 256 million, far exceeding the total Proofs of Debt filed.

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Winding-Up Order

Extract:

Mines Wellness City ~ On 9th May 2023, the High Court in Shah Alam granted a winding-up order on Mines Waterfront Business Park Sdn Bhd (MWBP). This order resulted from an unsuccessful attempt to reconcile with Ms. Amy Siew, a purchaser of a deluxe suite at Block D of Mines Waterfront Business Park located at No. 3 Jalan Tasik, Mines Wellness City, 43300, Selangor. Ms. Amy Siew terminated a sales and purchase agreement and succeeded in her legal suits. She secured a judgment amounting to nearly RM 1 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 RM 900,000 and received a 10% payment as a show of good faith, the settlement was abandoned for unknown reasons on her part.

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 Malaysian Department of Insolvency (MdI).

Creditors meeting

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 Official Receiver.

There were 23 separate Proofs of Debt (“PoD”) filed against MWBP, amounting to RM 3.8 million in total, claimed by various creditors, inclusive of the official administration charges mandated by the Official Receiver (“O.R.”). Nevertheless, we are grateful for the efforts of the Selangor branch of MdI and its officers in providing the platform for the shareholders of MWBP to engage with the unsecured creditors; their attempts to appoint a private liquidator were successfully thwarted in the interest of protecting our assets and business concerns.

As a responsible corporate citizen, we are committed to working hand in glove with the MdI to swiftly resolve our winding-up status and return MWBP to solvent status. To achieve this, we hope that the O.R. will expedite the verification and admission (or rejection) of the submitted PoD from the unsecured creditors so we can promptly settle the valid outstanding debts. The CHHB Group has faith and trust in the administration of the O.R., 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.

Necessary legal means

As of 31 May 2024, the total receivables from MWBP tenants amount to nearly RM 6 million, with the largest debtor being 23 Century International Life Science Sdn Bhd (nearly RM 4.8 million) and KSF Holdings Berhad (RM 1 million). We will ensure our legal counsel secures the necessary legal means to protect and safeguard our 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.

As a wound-up company, MWBP has no powers to actively pursue the recovery of these debts, but through our legal counsel, we work hand in hand and 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. MWBP is the beneficial owner of assets valued at RM 196 million (book value) as of 9 May 2023.