REAL estate developer Hatten Land on Monday (Aug 5) filed an application to the general division of Singapore’s High Court to be placed under judicial management.
In a bourse filing on Monday night, the group said it has proposed Tan Wei Cheong and Lim Loo Khoon of Deloitte & Touche to be appointed the joint judicial managers of Hatten Land. Hatten Land has also applied for Tan and Lim to serve as interim judicial managers pending the determination of the application.
Hatten Land noted that the applications were filed as a “proactive measure” to facilitate the ongoing restructuring efforts, and to forestall any possible action by other creditors.
In the period after filing the application and before the court has made its decision, no step can be made to enforce security over the company’s property, or repossess any goods under any hire-purchase agreement, leasing agreement and retention of title agreement, except with the court’s permission.
In addition, no proceedings, enforcement order or other legal process can be commenced against the company, except with permission from the court and subject to the court’s terms.
As the judicial management application is related only to Hatten Land, it is not expected to disrupt the operations of the company’s subsidiaries and business units as they continue to operate under their respective management teams.
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The judicial management application is also in light of the group’s latest developments, including the winding-up of its subsidiary Prolific Properties.
The subsidiary has been inactive since the pandemic as the group has prioritised the restructuring process and focused on its constrained resources on resuming construction at Harbour City.
Prolific Properties was in a net liabilities position amounting to RM11.7 million (S$3.5 million) as at Mar 31. An independent professional valuer had valued Prolific Properties’ equity value as at Mar 31 to be zero.
Prolific Properties’ main asset is a parcel of land in Melaka, Malaysia, which was meant for the development of a project that had not yet been completed. The land parcel was also the subject of a security granted to a Malaysian bank to secure Prolific Properties’ loan, with an outstanding loan balance of approximately RM2.2 million.
The subsidiary on Aug 1 informed Hatten Land that the Malaysian court had filed a winding up order against Prolific Properties, and an official receiver from the Insolvency Department of Malaysia was appointed as the interim liquidator until Aug 29.
“As of the date of this announcement, no instructions have been received from the interim liquidator,” said Hatten Land. It also said the net impact of Prolific Properties’ winding up is considered insignificant due to its zero equity value and net liabilities.
Trading in the shares of Hatten Land has been halted since Aug 2. Its counter then was flat at S$0.011. The group added it had requested a trading suspension on Monday.
