Hatten Land to resume Harbour City project after unit restructuring gets nod
Michelle Zhu
HATTEN Land ’s proposed scheme of arrangement for Gold Mart has obtained majority approval from the Malaysian subsidiary’s unsecured creditors, to waive 60 per cent or RM65.3 million (S$19.1 million) of liquidated ascertained damages.
The remaining 40 per cent, or RM43.5 million, will be settled through proceeds received from the sale of certain unsold units of the group’s Harbour City project, thereby preserving Hatten’s cash reserves.
On Wednesday (Sep 13), Hatten said some 80 per cent of creditors voted for the scheme at the Sep 8 meeting. Preparations are underway to restart construction activities and relaunch its marketing campaign for Harbour City once relevant approvals are obtained from the Court of Malaysia, the group added.
Gold Mart is the owner and developer of Harbour City.
Under the terms of the scheme, it will be given three months to commence works for the project upon the Court’s sanction, and will be required to complete the development of Harbour City within three years from the commencement date.
An agreement for Hatten to divest a 99 per cent stake in Gold Mart to Tayrona Capital for US$60 million was scrapped in February this year, after the group said Tayrona did not comply with its obligations.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
“We have been diligently and strategically undertaking steps for the revitalisation of Harbour City, and the confirmation of Gold Mart’s capital restructuring is an important step forward in our revitalisation plans,” said Hatten Land’s executive chairman and managing director Colin Tan.
“With this major milestone, we can now focus on accelerating our plan to make Harbour City a new iconic landmark in Melaka that blends new concepts of entertainment, hospitality and tourism.”
Harbour City is a five million square-foot project in Melaka comprising a mall, theme park and three hotel blocks.
Plans for the project were announced in 2018, with construction works set to commence in the first half of 2020. This was, however, stalled amid a legal dispute between Hatten Land and the main contractor, as well as the Covid-19 pandemic.
Shares of Hatten ended Tuesday flat at S$0.016.
Copyright SPH Media. All rights reserved.
