mDR to be restrained by court from dealing with property related to loan dispute

Tan Nai Lun

Published Fri, Feb 11, 2022 · 08:50 AM

THE court is restraining mainboard-listed mDR Y3D : Y3D 0% from dealing with a property linked to its loan dispute with MKY Capital, the company said in a bourse filing on Thursday (Feb 10).

In 2021, mDR, which is an after-market service provider for consumer mobile products, had appointed receivers for a property located on 8 Devonshire Road, after MKY had defaulted on certain interest payments for a S$24 million loan. The property was used to secure mDR's loan to MKY through an all-monies mortgage.

MKY later filed an originating summons against mDR, to seek, among other things, the declaration that MKY is entitled to exercise its equitable right of redemption over the property, and that mDR was wrong to refuse to redeem the mortgage upon payment by MKY.

Pending final determination on the originating summons, the court has ordered mDR and the receivers, Abuthahir Abdul Gafoor and Yessica Budiman of AAG Corporate Advisory, to be restrained, whether by themselves or through their agents, from selling, disposing of, or otherwise dealing with the property.

mDR had earlier terminated its chief operating officer after investigations by the company and the police into suspected misconduct. The move came after the company said it discovered 2 separate cases of unauthorised use of the group's marketing incentive rebates - amounting around S$2.08 million - at its subsidiaries.

Shares of mDR last closed flat at S$0.067 on Thursday.