Landmarks unit defaults on RM133mil financing facility

PETALING JAYA: Landmarks Bhd’s wholly-owned subsidiary, Andaman Resort Sdn Bhd (ARSB), has defaulted in its repayment on financing facilities totalling RM133.37mil.

In a filing with Bursa Malaysia, Landmarks, a 21.7% associate of Genting Bhd, said OCBC Bank (M) Bhd had issued a notice demanding the repayment of banking and credit facilities totalling RM133.37mil, to be paid by March 22.

“In consequence of the fire incident which took place at The Andaman Resort on Jan 12, 2021, ARSB had to cease its business operations, which was Landmarks and its subsidiaries’ biggest revenue contributor then.

“As a result of this, ARSB was unable to fulfil their obligations under the facilities, particularly with regards to the specified timelines for such obligations,” Landmarks said.

Nonetheless Landmarks said ARSB had duly fulfilled its obligation to the bank by making quarterly principal repayments up to March 31, 2021 and made payments for the accrued interest up to July 29, 2022.

Save for the above facilities from the bank, Landmarks said it has no other outstanding loans or facilities with any other banks or financial institutions.

“Therefore, the company is of the view that there will be no material impact on its business, both financially and operationally.

“In the meantime, the group will take proactive measures to engage with its creditors, where applicable, to seek their continuous support.”

Landmarks added that it remains committed to taking all necessary steps to address the default while ensuring the continuity of its operations.

“Landmarks Group would like to remind that the current businesses, in particular its operations in Bintan, Indonesia, would be sufficient to ensure its continuity.

“The group shall endeavour to continue its business operations notwithstanding this isolated event of default.”

For its fourth quarter ended Dec 31, 2022, Landmarks reported a net loss of RM21.42mil, on revenue of RM10.36mil.

In its notes on its fourth quarter results, Landmarks said business in Treasure Bay Bintan had improved significantly since the second quarter, adding that it expects the recovery momentum to continue, provided there are no deadlier mutated Covid-19 virus that cannot be contained.

“The management will be reviewing and finalising the insurance claims for the fire losses of The Andaman, Langkawi, in order to be able to start the re-construction work soon.

“The redevelopment plans are being put in place but the uncertainties from increase in building material and labour costs pose major challenges and the management is exploring various options to mitigate these risks.”

Landmarks said the rebuilding and restoration process of the new resorts is projected to take approximately 36 months or more upon commencement of work.

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