MWBP and MIECC are collectively valued at RM550 million at the current market value.

KUALA LUMPUR — Country Heights Holdings Berhad (CHHB), a prominent public listed company on the Main Board of Bursa Malaysia, is grappling with accounting discrepancies and delays in financial updates attributed to its wholly-owned subsidiary, Mines Waterfront Business Park (MWBP).

In an unprecedented move spanning 40 years, CHHB has acknowledged its failure to meet the Bursa Malaysia deadline for financial announcements, citing challenges linked to MWBP. Recognizing the paramount importance of transparency, CHHB’s Board of Directors (BOD) has initiated essential accounting measures to rectify the financial statement discrepancies.

The primary issue stems from dealings with MBSB bank, the Malaysian Department of Insolvency (MDI), and 23 Century International Life Science Centre (23 Century), causing significant delays in financial updates and book figure verification. CHHB is actively engaging with these entities to overcome the challenges.

One notable legal setback involves Ms. Amy Siew, a MWBP property purchaser, who successfully terminated the Sales & Purchase Agreement during the property handover. Instead, she opted for claims of Liquidated Ascertained Damages (LAD). The negotiated settlement for the RM600k property amounted to RM1.1 million, with RM75,000 paid to her lawyer. Despite the settlement, Ms. Amy Siew’s winding-up petition triggered additional creditor claims, totaling RM3.8 million. CHHB, committed to resolving the matter promptly, has deposited RM390,000, equivalent to 10% of the amount, pending MDI’s decision. The BOD has decided to adopt the RM3 million figure for book purposes.

Addressing another aspect of the accounting challenges, CHHB clarified its dealings with MBSB Bank, correcting media reports from December 2023. The inaccurately stated RM180 million debt for financing facilities is now estimated between RM72 million to RM79 million, falling under the Islamic loan scheme. The BOD has instructed necessary accounting measures to accurately reflect the group’s financial position based on the corrected estimate of RM79 million. A settlement proposal from MBSB Bank, dated 17 November 2023, offers an upfront payment of RM1 million and monthly payments of RM500k over 24 months, contingent on MDI’s approval for case discharge.

Furthermore, MWBP faces rent payment issues from debtors like 23 Century, owing up to RM3.8 million under winding-up circumstances. The accounting and audit teams are diligently addressing this complex situation.

For public awareness, MWBP and Mines International Exhibition and Convention Centre (MIECC) are currently valued at RM550 million. CHHB encourages potential stakeholders interested in asset sales or acquisitions to directly approach the company, avoiding dealings with other parties.

Despite these challenges, CHHB remains steadfast in its commitment to transparently and responsibly address the situation, expressing gratitude for the continued support of its stakeholders during this testing period.

— BebasNews

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