Hatten Land Files Court Application Be Put Under Judicial Management

Hatten Land, a real estate developer, has recently applied to the General Division of the Singapore High Court to go under judicial management. The company has also suggested Deloitte & Touche’s Tan Wei Cheong and Lim Loo Khoon to serve as joint judicial managers to handle the company’s business, assets, and affairs. Pursuant to section 95 of the Insolvency, Restructuring and Dissolution Act 2018, a moratorium has been automatically imposed on the company from the date of the judicial management application. This moratorium prevents any winding up order or resolution to be made against the company, and prohibits the seizure of its property and goods, unless authorized by the court. Additionally, no other legal proceedings or enforcement orders may be initiated or continued against the company during this period.

In connection with this application, Hatten Land has also requested to be placed under interim judicial management. Trading of the company’s shares has been suspended since August 2, and the company has requested for the suspension to continue on August 5.

The company explained in a statement that the judicial management application and interim judicial management application were made as a proactive measure to aid the ongoing restructuring efforts and to prevent any adverse action by other creditors. This decision was made in light of recent developments, including the winding-up of an inactive subsidiary. The subsidiary, Prolific Properties Sdn. Bhd., has been inactive since the onset of Covid-19 as the group focused on its restructuring efforts and the resumption of construction at Harbour City. As of March 31, this subsidiary was in a net liabilities position of RM11.7 million ($3.5 million). Prolific Properties’ main asset is a 2.05-acre parcel of land in Melaka, intended for the development of Satori. This parcel is subject to a security granted to a Malaysian bank to secure a loan, with an outstanding balance of approximately RM2.2 million or $0.66 million.

With its prime location along Clementi Avenue 1, Elta Condo is more than just a residential development- it serves as a doorway to a dynamic lifestyle, complete with easy access to various shopping destinations and a diverse culinary scene. Residents of Elta Condo are spoilt for choice with the plethora of retail options nearby including the popular Clementi Mall, 321 Clementi, and West Coast Plaza. For an even wider range of shopping options, the bustling Jurong East area with its vast malls such as Jem and Westgate is just a stone’s throw away. With its unbeatable location, residents of Elta Condo can truly experience the best of both worlds- urban convenience and vibrant living.

According to Hatten Land, construction of Satori was halted during the pandemic as the appointed contractor filed for bankruptcy and subsequently closed down. The company had been working to appoint a new contractor and expected construction to resume around six months after the resumption of another project, Harbour City.

In May this year, a professional valuer assessed Prolific Properties’ equity value at zero as of March 31, due to its revalued net asset value being in a net liabilities position. On August 1, Prolific Properties notified Hatten Land that the Malaysian Court had issued a winding-up order, effective that same day. As a result, an interim liquidator from the Insolvency Department of Malaysia was appointed by the court until August 29.

Hatten Land stated that the judicial management application and interim judicial management application only pertain to the company, and are not expected to disrupt the operations of its subsidiaries and business units, which continue to be managed by their respective teams. The company believes that the impact of Prolific Properties’ winding-up on the group is insignificant, given its net liabilities and zero equity value.

Hatten Land’s shares last traded at 1.1 cents.