KUALA LUMPUR (Jan 7): The High Court in Melaka has approved the scheme of arrangement between MDSA Ventures Sdn Bhd — a subsidiary of Singapore-listed Hatten Land Ltd, and its creditors.
Judicial Commissioner Maidzura Mohammed granted a sanction order to the company, after being told that the scheme was approved by 96% of the total value of the creditors present and voting in person or by proxy at a creditors’ meeting on Dec 18.
“The court grants the sanction order to approve the proposed scheme of arrangement and the debt restructuring of MDSA Ventures,” the court ruled yesterday.
Counsel Lee Shih of Lim Chee Wee Partnership appeared for MDSA Ventures.
Hatten Land, in an announcement to the Singapore Exchange, said the scheme is now binding on MDSA Ventures and the creditors.
“The Court Order dated Jan 6, 2021, approving the scheme, will be effective once the court order is lodged with the Companies Commission of Malaysia.
“The board further wishes to update that the High Court had granted an extension of the restraining order for a further one month from today,” the real estate developer said.
On July 12 last year, MDSA Ventures Sdn had obtained a three-month restraining order for it to engage in the restructuring exercise.
“During the moratorium period, MDSA Ventures shall work with its legal counsel to formulate the details of the scheme to be presented to the creditors for their consideration,” Hatten Land's executive chairman and managing director Datuk Colin Tan June Teng said in a statement to the Singapore Exchange then.
A restraining order is basically a court-ordered moratorium protection. It allows the company to have protection from legal proceedings, while the company is pursuing restructuring under a scheme of arrangement.
The Edge Singapore reported on July 2 that Hatten Land has unveiled various initiatives to strengthen the resiliency of its business, following the impact of the Covid-19 pandemic.
This also entailed the strategic restructuring for MDSA Ventures and another subsidiary, MDSA Resources, in a bid to strengthen their balance sheet.
Hatten Land’s operations in Singapore and Malaysia were heavily affected during the lockdown measures in both countries.
In Melaka, where the group’s portfolio is primarily based, a significant decline in international and domestic tourist arrivals has affected consumer expenditure, as well as big ticket items such as local properties.