Hatten Land's subsidiary granted moratorium for restructuring

It will work with its legal counsel to formulate a restructuring scheme.

Property developer Hatten Land’s subsidiary MDSA Ventures has been granted a three-month restraining order beginning 10 July and a leave to call for the creditors’ meetings by the High Court of Malaya at Malacca, Malaysia, according to a press release.

During the moratorium period, MDSA Ventures will work with its legal counsel to formulate the details of the restructuring scheme to be presented to the creditors for their consideration.

According to an earlier filing, total debt owing to the scheme creditors is at $92.24m (RM283m), of which about 84% is owing to entities with the group to be eliminated at consolidation. Another subsidiary, MDSA Resources, has a debt totalling $104.95m (RM322m), with about 79% to be eliminated at consolidation.

MDSA Resources was set up to develop the Hatten City Phase 1 project, which was finished by 2016. Meanwhile, MDSA Ventures was set up to develop Hatten City Phase 2 project that was completed by 2018.