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Scheme of arrangement for Hatten Land subsidiary approved

The Editor
The Editor • 2 min read
Scheme of arrangement for Hatten Land subsidiary approved
Harbour City, Hatten Land.
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The scheme of arrangement for Hatten Land PH0 -

’s subsidiary, Gold Mart Sdn Bhd, has been approved by the court on March 21.

According to Hatten Land, there will be no material financial impact in its results for the FY2024 ending June 30 as it had already been accounted for in the group’s FY2023 results.

Gold Mart is the developer of Harbour City in Melaka.

A scheme of arrangement was proposed on June 14, 2023, under Sections 366 and 368(1) of the Malaysian Companies Act 2016. At the time, the Kuala Lumpur High Court proposed that Gold Mart will call for a meeting with its creditors to be held within 90 days from June 12, 2023.

A restraining order was also ordered for all legal proceedings against Gold Mart to be halted, including the commencement or continuing of winding up proceedings and, or any appointment of receiver and, or manager over any and all of the assets of Gold Mart for the same period.

On Sept 13, 2023, the majority of Gold Mart’s unsecured creditors agreed to waive 60% - or RM65.25 million - of liquidated ascertained damages (LAD) as at Nov 30, 2022. The remaining 40% - or RM43.5 million - will be settled through proceeds from the sale of assigned properties, which are the unsold units of Harbour City.

See also: Why Isetan’s minority shareholders believe the privatisation offer undervalues the company

In the same statement, Hatten Land said that it has already made preparations to restart construction activities and also to relaunch Harbour City’s marketing campaign once the relevant approvals from the Court of Malaysia are obtained.

Under the scheme, Gold Mart will have to complete the development of Harbour City within three years from the commencement date, being three months after the court’s sanction.

Shares in Hatten Land closed at 1.1 cents on March 25. The group requested for a halt in the trading of its shares on the morning of March 26.

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