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KUALA LUMPUR (Feb 12): Country Heights Holdings Bhd (KL:CHHB) said it has postponed its extraordinary general meeting (EGM), which sought shareholders’ approval to commence legal action against the liquidator of Mines Waterfront Business Park Sdn Bhd (MWBP), in order to allow further review of its circular by shareholders.
The EGM, initially scheduled for Feb 13, has also been postponed to incorporate additional information arising from regulatory clarification, Country Heights said in a filing on Wednesday.
Country Heights had called for the EGM to address liquidation action against its subsidiary MWBP by liquidator Messrs Baker Tilly Insolvency PLT, which it said had continued despite settlement of admitted debts.
In announcing the EGM’s postponement on Tuesday, Country Heights said it would notify shareholders of the new date of the EGM later.
MWBP fell into liquidation after loan facilities granted by Malaysia Building Society Bhd (MBSB) fell into default in 2023, prompting the subsequent appointment of Baker Tilly as liquidator.
However, Country Heights pointed to “transparency, valuation and procedural concerns arising from the liquidation and asset disposal process”, and claimed that Baker Tilly has provided breakdowns of proof of debt “which causes confusions and discrepancies”.
“Since its appointment, the Company has identified serious concerns in relation to the manner in which Baker Tilly has discharged its duties and responsibilities as liquidator,” Country Heights had said.
“In light of the foregoing, the Board considers it is necessary to seek shareholders’ authorisation to take all appropriate actions in connection with Baker Tilly’s conduct as liquidator of MWBP, including the pursuit of any legal, regulatory or remedial measures, where deemed appropriate and in the best interest of the company,” it added.
Aside from the resolution to commence legal action against Baker Tilly, the EGM also sought to get shareholders’ nod to review and approve the doubtful proof of debts prepared by the liquidator in respect to MWBP’s winding-up.
The company is also seeking approval to enter into lease agreement with founder Tan Sri Lee Kim Yew for the use of the Mines Waterfront Business Park and Mines International Exhibition Centre as part of an arrangement following Lee’s move to settle MWBP’s debt to MBSB.
“Tan Sri Lee Kim Yew had executed a Personal Guarantee in favour of MBSB in respect of the said loan facilities. The Board wishes to place on record and clarify the factual and legal position of the company in relation to the said loan facilities, the ensuing enforcement actions, and the role of the Guarantor (Lee),” it said.
Shares of Country Heights settled unchanged at 17 sen on Wednesday, giving it a market capitalisation of RM55.4 million. The stock is down 5.56% this year.
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