SINGAPORE – 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 in Melaka – thereby preserving Hatten’s cash reserves.
On Wednesday, Hatten said some 80 per cent of creditors voted for the scheme at the Sept 8 meeting.
Preparations are under way to restart construction activities and relaunch its marketing campaign for Harbour City once relevant approvals are obtained from the Court of Malaysia, added the group.
Gold Mart is the owner and developer of Harbour City. Under the terms of the scheme, it has been given three months to commence works for the project upon the court’s sanction and is 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 (S$81.6 million) was scrapped in February 2023 after the group said Tayrona did not comply with its obligations.
“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.”
Plans for the mixed-use development were unveiled in 2018. Harbour City, to comprise a mall, theme park and three hotel blocks, is expected to span 5 million sq ft in built-up area when completed.
Construction works were 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 Land closed 6.25 per cent higher at 1.7 cents on Wednesday. THE BUSINESS TIMES
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