Friday 29 Mar 2024
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KUALA LUMPUR (May 17): Kumpulan Perangsang Selangor Bhd's (KPS) unit has secured a winding-up order against a hotel operator for failing to settle RM8.77 million after breaching a lease agreement.

KPS said its unit Perangsang Hotel and Properties Sdn Bhd (PHP) had filed the petition against Leo Hospitality Sdn Bhd after the latter failed to comply with a judgement order that required it to settle the amount due under the lease agreement.

PHP filed its claim against Leo Hospitality last August for failing to honour payment obligations and repayments.

PHP has operated Quality Hotel City Centre in Kuala Lumpur from July 1999 till February 2016. The hotel was then leased to Leo Hospitality for a 20 years commencing March 2016.

According to PHP, Leo Hospitality had failed to pay PHP in January 2017 its monthly lease fees, sales commission fee, deposits, as well as stamp duty, among others, and had continued to default on the outstanding sum, despite being served overdue notices.

KPS said the High Court in Shah Alam heard its winding-up petition on Wednesday, and ordered that Leo Hospitality be wound up.

At 3.45pm, shares of KPS were trading down 1 sen or 0.88% at RM1.12 for a market capitalisation of RM607.25 million.

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