Country Heights Holdings Berhad has issued a statement surrounding its valuation of its properties and news reports over its owings to MBSB.
The group said it acknowledged that it has missed the deadline as required by Bursa Malaysia and understands the importance of transparency and wishes to address the challenges it is currently facing. This it said prompted the Board of Directors to act in initiating the necessary accounting measures to accurately reflect in the financial statement.
Among the issues the group is facing its the dealings with MBSB bank, the Malaysian Department of Insolvency (MDI), and 23 Century International Life Science Centre (23 Century) which it said have delayed its financial updates and the verification of the figures in the book. However, the Group said it is actively taking steps to engage with its counterparts and to address these challenges.
The group also said Ms. Amy Siew, one of the purchasers of MWBP succeeded in her legal suits against the company to terminate the Sales & Purchase Agreement during the handover of the property. Instead, she submitted claims for Liquidated Ascertained Damages, or “LAD”.
Following the court judgment, for the property valued at RM600k, the claim totaled RM1.1 million. During the negotiation, a reduced amount was agreed, and RM75,000 was paid to her lawyer. However, the group said her winding-up petition was still enforced against MWBP’s subsidiary, which has led to other creditors also filing their proof of debts, which is now totaling RM 3.8 million, with the admission of debt still pending MDI’s decision. The Company says it had through its lawyer said they are committed to resolve the matter expeditiously and has deposited RM390,000 to be paid to MDI, equivalent to 10% of the amount, even though the claim of RM3.8 million is not accurate and verified yet. Today, the BOD has decided to adopt
the figure of RM3 million for the book, and for the account to be announced.
As for MBSB Bank, the company said actual amount owed is ranges between RM72 million to RM79 million and not RM180 million as reported by some media. It said the board had instructed the initiation of necessary accounting measures to accurately reflect the Group’s financial position based on the correct estimate of RM79 million.
MWBP has received a proposal for settlement from MBSB Bank dated 17 November 2023, of which to pay an upfront payment of RM1 million and the remainder of RM500k monthly, to be paid over 24 months and this is subject to the offer by the MDI for the case to be discharged.
Country Heights said adding to the accounting problem, some of the debtors of MWBP, such as 23 Century, who was not paying its rent up to RM3.8 million, under the winding up situation. The account and audit have taken a very careful approach to address the situation.
Some of these are long standing issues which continue to plague the group’s reputation and severely impacts its marketability and investment opportunities. Lest is resolves this matters, Country Heights will continue to be dragged by these problems curtailing it from moving forward.
