Trustee of Laguna National mired in conflict of interest; shouldn’t be involved in club’s winding up, court told
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THE trustee of Laguna National Golf and Country Club appears to be mired in a conflict of interest and was derelict in its duties to noteholders, and should not be involved in the winding-up of the club, the court heard on Monday (Feb 6).
The trustee, British and Malayan Trustees (BMT), had “turned a blind eye to many issues” and would not disclose information when asked to, giving rise to doubts that they would be objective and cooperate with liquidators, argued senior counsel Tan Chee Meng, who is acting for Lim How Teck.
Pioneer club member Lim had filed a petition to wind up the club after it failed to pay back millions owed to noteholders. The 30-year-old notes, issued to finance the construction of the club, were due for redemption in June 2021. They amounted to S$70.6 million, according to the club’s 2020 financial statements. Club owner Peter Kwee had written to the trustee the day before the redemption date, saying the club was unable to fulfil the redemption due to its “current financial position”.
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