GL's hotel unit served notices for £1.9m over rent arrears

Sharanya Pillai

Published Fri, Dec 4, 2020 · 10:13 AM

SEVERAL companies under GLH, the hotel division of mainboard-listed GL, have been served legal notices for £1.9 million (S$3.4 million) in rent arrears, interest and costs, by subsidiaries of UK landlord Topland Group Holdings.

GLH had attempted to negotiate rental concessions with Topland in view of the Covid-19 pandemic, but did not succeed, GL disclosed in a Friday bourse filing after the market close. The firm had paid full rent to Topland from the start of this year up to Oct 28.

"The company is disappointed by Topland's stance ... GLH has sought legal advice and will, in consultation with its legal advisers, take such steps as are necessary to defend itself against Topland's claims," GL said in its filing.

GL added that the claims will not have a material impact on profits. GLH will continue to engage its landlords on the challenging conditions under which it is operating.

"GLH will endeavour to work with the landlords to reach conclusive and mutually supportive arrangements to manage cash resources in these challenging times," GL said. It noted that the UK government has granted a moratorium on the issue of statutory notices and winding up proceedings until Dec 31.

Shares of GL closed at S$0.575 on Friday, down 0.86 per cent.