Khazanah’s Hotel Subsidiary Wound Up Over RM95mil Debt
Background
A subsidiary company of Khazanah Nasional, TAR PH Sdn Bhd, was wound up by the High Court over an unpaid debt of almost RM95 million for supplies to the Puteri Harbour Hotel in Johor. The debt was incurred three years ago for air-cooling systems supplied to the hotel.
The Winding-Up Order
The winding-up order was issued by Judicial Commissioner Raja Rozela Raja Toran at the High Court in Shah Alam. The order was made on a petition presented by the creditor, Jana DCS Sdn Bhd, in August last year. The court also appointed the official receiver as the liquidator of TAR PH and awarded costs of RM10,000 to Jana DCS to be paid out of the assets of the wound-up company.
The Dispute
TAR PH had contended that the existence of an appeal to the Court of Appeal from the High Court’s refusal to set aside the arbitration award constituted a bona fide dispute of the debt owed. However, Jana DCS contended that the pending appeal was irrelevant to the winding-up proceedings and that a creditor was not under any legal obligation to exhaust alternative remedies before presenting a winding-up petition.
The Hotel and Its Financial Situation
TAR PH owns the JEN Johor Puteri Harbour Hotel, a four-star hotel that had been run by the Shangri-La group until it ceased operations on May 9 last year. The hotel’s financial statements revealed assets worth RM66.48 million against liabilities of RM183.76 million, inclusive of the debt owed to Jana DCS.
The Consequences
The winding-up of TAR PH will have significant consequences for the company and its stakeholders. The company’s assets will be liquidated to pay off its debts, and the hotel may be sold or repossessed by the creditor. The winding-up will also have an impact on the employees of the hotel, who may face uncertainty about their future employment.
Conclusion
The winding-up of TAR PH is a significant development in the hospitality industry in Malaysia. The case highlights the importance of paying debts on time and the consequences of failing to do so. It also underscores the need for companies to prioritize their financial obligations and to take steps to avoid winding-up proceedings.
FAQs
Q: What is the amount of debt owed by TAR PH to Jana DCS?
A: The debt is almost RM95 million.
Q: Why was TAR PH wound up?
A: TAR PH was wound up due to its failure to pay a statutory demand served on the company in July last year.
Q: What is the status of the hotel owned by TAR PH?
A: The hotel, JEN Johor Puteri Harbour Hotel, ceased operations on May 9 last year.
Q: What are the consequences of the winding-up of TAR PH?
A: The company’s assets will be liquidated to pay off its debts, and the hotel may be sold or repossessed by the creditor.