Moody's outlook on the Korean banking system has been negative since May 2016.
KUALA LUMPUR: Talam Transform Bhd
(TTB) is expected to make a net gain of RM47.78mil by disposing its entire 85% equity in the operator of a 263-room Maxcourt Hotel in Changchun, China.
In a filing with Bursa Malaysia, the property investment and development firm said its indirect wholly-owned subsidiary, Malim Enterprise (HK) Ltd, had signed an agreement to sell the shares in Jilin Province Maxcourt Hotel Ltd (JPMH) to Jilin Province Zhuo Yue Investment Co Ltd for 84.66 million yuan (RM55.1mil).
In addition, the purchaser will also make available funds to JPMH of 95.34 million yuan (RM62.1mil) for the settlement of all JPMH’s debts.
On the debts of JPMH being fully resolved, all the remaining funds will be fully released to Malim Enterprise as full settlement of the debts owing to it and TTB, which total 85.9 million yuan (RM56.0mil).
JPMH’s current debts, excluding TTB and Malim Enterprise debts, as at Dec 31, 2016, were 82.39 million yuan (RM53.7mil).
In the event the available funds are not sufficient to fully resolve all the debts of JPMH, Malim Enterprise will continue to be responsible for repaying such unresolved debts.
TTB said the proposed share disposal would enable it to reduce its losses, improve its liquidity position and reduce the group’s borrowings.
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