Ivory Properties’ unit under receivership after default
KUALA LUMPUR (Aug 25): Practice Note 17 company Ivory Properties Group Bhd (KL:IVORY) said its wholly owned unit Ivory Indah Sdn Bhd has been placed under receivership after it defaulted on loans with CIMB Islamic Bank Bhd.
Ivory Properties said Ivory Indah is not a major subsidiary, with its assets making up 15% of the group. As of end-March, Ivory Indah’s net book value was RM20.57 million.
CIMB Islamic appointed a receiver and manager for Ivory Indah on Aug 22, according to the property developer in an exchange filing on Monday.
The receivership happened because Ivory Indah failed to pay its debts by Aug 12, breaking the terms of its loan agreements with CIMB Islamic.
Ivory Properties said CIMB Islamic has appointed Chin Yen Lee and Khoo Poh Poh from EY Insolvency Services as receivers to take control of a vacant land in Penang owned by Ivory Indah as per terms of a loan agreement from 2013.
The company said this won’t have a major impact on its operations for now, and any potential losses will only be known after Ivory Indah submits a full financial report within 14 days. Ivory Properties also said it will cooperate fully with the receivers.
The announcement follows Ivory Properties group chief executive officer and executive director Datuk Low Eng Hock’s departure from the company, effective Aug 22, amid reports linking him to an ongoing investigation into the MBI Group investment scheme. On Aug 21, Ivory Properties disclosed that Low was cooperating with the authorities regarding the matter. He remains a substantial shareholder of the company, with a 17.251% direct and 5.76% indirect stake in the company.
Ivory Properties’ shares will be suspended from Aug 29 and may be delisted on Sept 3, after Bursa rejected its request for more time to submit a recovery plan. The company must appeal by Aug 28 to avoid delisting.
Shares in Ivory Properties ended half a sen or 100% higher at one sen, valuing the company at RM2.45 million. The stock is down 80% year to date.
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