Landmarks' resort-operating unit in Bintan ordered to work out debt plan


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KUALA LUMPUR: PT Bintan Hotel Utama (BHU), an indirect subsidiary of Landmarks Bhd that operates a resort and other attractions at the Treasure Bay Bintan resort city in Indonesia, has been ordered by a commercial court to propose a plan to restructure its debts.

In a filing with Bursa Malaysia, the resort developer and manager said the Medan commercial court had ordered a temporary suspension of payments by BHU following a petition filed PT Rancang Adhya Selaras (RAS). This is to enable BHU to propose a composition plan to its creditors

RAS, contracted previously to provide architectural and engineering consultancy services and designated as “superintending officer” under contracts relating to construction works, is claiming 3.05 billion rupiah (RM1.02mil) and S$33,000 (RM104,455) for work done.

BHU, however, disputed this alleged debt while it abided by the process of the Indonesian courts, Landmarks said.

“As BHU, with the support of the company (Landmarks), is able to meet all its legitimate liabilities as and when they fall due, the administrator (appointed by the court) is expected to enable BHU to continue conduct of its businesses as a going concern,” it said.

“This event is not expected to significantly impact the Group financially and operationally. Save for legal fees and disbursements, BHU is not expected to incur losses arising from the order.”

Landmarks said its board was taking steps, including working with the appointed administrator, to resolve the matter so that the order might be lifted.

“The board views that the action of RAS seems to be an abuse of the court process and the board will take all steps necessary to ensure the speedy resolution of these proceedings,” it said.

The net book value of the assets of BHU, which owns a 40-key resort featuring luxury camping tents called The Canopi, was in deficit of 26.84 billion rupiah (RM8.94mil) as at Dec 31, 2016.

BHU is ultimately owned by Landmarks through its wholly-owned investment holding subsidiary Primary Gayeway Sdn Bhd.

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