Hatten Land subsidiary receives notice of default and letter of demand for S$4M

SINGAPORE: MDSA Resources, Hatten Land subsidiary, receives notice of default and a letter of demand from Kenanga Investment Bank demanding a sum of RM14,114,652.15 (S$4 million) on March 28.

The Business Times reports this demand stemmed from Hatten Land’s medium-term note (MTN) programme.

To overcome this setback, Hatten Land hired Deloitte & Touche Financial Advisory Services to craft a restructuring plan and explore fundraising avenues.

The notice of default from Kenanga Investment Bank, representing the MTN programme, specified that RM12,350,000 (approximately S$3.5 million) and RM492,646.58 (approximately S$140,733) must be settled by April 5, 2024.

Adding to the pressure, MDSA Resources received a letter of demand from Kenanga’s solicitor, insisting on settling RM1,272,005.57 (approx. S$363,371) by March 20.

The letter stated that the total amount, along with a 10% annual late payment interest from March 21, 2024, until full settlement, must be paid to Kenanga within seven days from the date of the letter.

These notices and letters compound Hatten Land’s existing financial woes, as they’ve also received demands from Haitong International Financial Products (Singapore), Bank Kerjasama Rakyat Malaysia, certain bondholders, and HSBC Bank, amounting to US$21.5 million (approx. S$29 million), RM60 million (approx. S$17.1 million), US$23 million (approx. S$31 million), and RM6 million (approx. S$1.7 million) respectively.

Despite the storm, Hatten Land vows to tackle the issue head-on. They remain “committed in engaging proactively with Kenanga”, backed by their financial adviser, to find a resolution.

In addition, the company’s major shareholders are in talks with a reputable Singaporean financial institution to secure fundraising facilities. Using their personal assets as collateral, they aim to provide a shareholders’ loan for repaying secured bonds.

While this fundraising initiative is in the legal documentation phase, “barring any unforeseen circumstances,” Hatten Land “expects to drawdown the fundraising facilities in FY2024.”

Regarding past demands, Hatten Land reassures stakeholders that they’re in ongoing discussions with lenders to address these concerns.

Hatten Land has requested the lifting of its trading halt following these announcements. The company’s stock last traded at S$0.011 on March 25. /TISG

Read also: Hatten Land’s net loss hits S$5.8M — A huge setback for the real estate giant