Park Hotel CQ paying out dividend to settle preferential claims

Park Hotel CQ, which is in liquidation and owes creditors over S$6.3 million, is paying out an interim dividend to its preferential claimants this month.

According to a notice in the E-Gazette, it is paying out 100 per cent of all admitted preferential claims in the form of a first interim dividend from Sep 12 onwards.

When contacted, liquidator Aw Eng Hai, a partner at accountancy practice Foo Kon Tan, declined to comment.

In November last year, the High Court gave its approval for the liquidators of Park Hotel Management (PHM) to wind up PHM's wholly owned unit, Park Hotel CQ which owed creditors over S$6.3 million. PHM was itself placed under winding up in July 2021 by the Court after its subsidiary Grand Park OR - the former operator of the Grand Park Orchard hotel - was unable to pay debts of over S$5.2 million.

Allen Law Ching Hung, the son of Hong Kong-based billionaire Law Kar Po, was the sole director and chief executive officer of Park Hotel CQ from Apr 3, 2013 until Mar 16, 2021, when he stepped down.

Of the S$6.3 millon, about S$5.92 million was owed to Park Hotel CQ's former landlord, Ascendas Hospitality Reit, under a master lease for a property at Unity Street - the Park Hotel Clarke Quay. Ascendas Hospitality Reit terminated its master lease with the hotel operator on Aug 28 last year, and took possession of the property after Park Hotel CQ failed to pay its debts by June 30 that year. The hotel has since been rebranded Riverside Hotel Robertson Quay.

According to the creditors list as at Sep 8, 2021, other creditors include PHM, which was owed over S$592,180 for management fees payable under a hotel management agreement, and Park Hotel Group Management, which was owed some S$30,000. TravelCLICK, Mitsubishi HC Capital Asia Pacific and Ernst & Young were also on the creditors list for smaller, individual sums of below S$11,000.

PHM was previously the owner of Park Hotel Group, which according to its website, operates the Grand Park City Hall in Singapore, in addition to hotels in Hong Kong, China, Japan and the Maldives. The owners of other properties in Singapore, such as Park Hotel Alexandra and Park Hotel Farrer Park, terminated management contracts with the hotel operator after the High Court approved the winding up of PHM in July last year.

In March last year, Park Hotel Group's ownership was transferred to Park Hotel Group Management, which is owned by British Virgin Islands-incorporated Good Movement Holdings, which in turn is owned by Law.

Park Hotel CQ, along with its liquidators, have filed a lawsuit against PHM director Law over some S$6.5 million in funds that were transferred out of Park Hotel CQ. PHM and its liquidators also filed another suit against Law and 3 other companies over assets sold to entities linked to Law before PHM was placed into winding up.

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