Companies & Markets

Hatten Land receives notice of default for US$20 million convertible loan

Vivienne Tay

Published Thu, Feb 1, 2024 · 09:34 AM

HATTEN Land : PH0 0% has received a notice of default for a US$20 million convertible loan obtained in 2017 and extended by its lender in 2020.

The lender, Haitong International Financial Products (Singapore), had issued the notice of default on Jan 30. It demanded the repayment of US$21.5 million, which includes the principal sum and the interest accrued as at Jan 18, 2024, within five business days of the notice.

In its written response to the property developer validating the notice, Haitong said that it is prepared to withhold taking recovery actions against Hatten Land until Mar 31, 2024. This is while both parties negotiate a settlement agreement.

Haitong and Hatten Land first entered into the loan agreement in 2017. The facility was obtained to finance the completion of the group’s Hatten City project and other approved development projects.

Hatten Land was given more time to repay the loan on May 21, 2020, after it pledged an additional 360 million ordinary shares to Haitong, bringing the total stake pledged to about 53 per cent.

The loan facility is secured by a corporate guarantee from Hatten Land’s Malaysia subsidiary, a charge of 760 million Hatten Land shares, 345 retail units and a personal guarantee by certain company directors.