KUALA LUMPUR: Practice Note 17 company Zelan Bhd
's wholly-owned subsidiary Zelan Holdings (M) Sdn Bhd has proposed to transfer the ownership of two properties to MMC Engineering Sdn Bhd to settle RM5.22mil of debt owing to the company.
MMC Engineering is wholly owned by MMC Engineering Group Bhd, which is in turn a unit of MMC Corp Bhd. The firm had previously provided engineering and related services to a unit of Zelan group in connection with its piling and civil engineering works, the invoices for which were novated to and assumed by Zelan Holdings.
In a bourse filing, the group said the properties comprise two office lots on two separate 1,601 sqm tracts of leasehold land in Tempat Bandar Baru Tun Razak, KL. The tenures of the two tracts of land expire on July 23, 2090.
Zelan said the properties, which carry a net book value of RM5.4mil, incurred an investment cost of RM3.32mil on Feb 18, 1994.
According to the filing, the parties have inked a conditional sales and purchase agreement for the disposal of the properties at a disposal consideration of RM5mil.
The proposed debt settlement will form part of the eventual proposed regularisation of the group.
