Landmarks unit's receiver and manager finds buyer for Langkawi luxury resort

TheEdge Sat, Feb 24, 2024 12:27am - 3 months View Original

KUALA LUMPUR (Feb 24): Landmarks Bhd said a buyer has been found for its wholly-owned unit Andaman Resorts Sdn Bhd's (ARSB) luxury resort, The Andaman, in Langkawi. 

The group said ARSB's receiver and manager (R&M) Deloitte Restructuring Services PLT had entered into a binding agreement with Mutiara Hotels & Resorts Sdn Bhd on Monday for the sale of the charged asset.

“We will make further announcements when we have received further information from the R&M,” Landmarks said in a bourse filing on Friday.

As at July 6 last year, ARSB had a net book value of RM25.8 million.

ARSB's bid to obtain a court injunction to bar the R&M from selling the company's assets fell through last year. 

ARSB fell into receivership in July 2023 after it defaulted on financial facilities totalling RM133.37 million from OCBC Bank (M) Bhd.

After the default, a new repayment plan was agreed between the pair, whereby ARSB was granted two months to repay the outstanding amount.

However, after the agreed timeline lapsed and/or was breached, the bank appointed Deloitte as the R&M of ARSB.

Landmarks’ troubles began during the Covid-19 pandemic, when the tourism industry lull hamstrung its operations, while a fire incident at The Andaman rendered the resort, its main revenue contributor, inoperable.

The resulting impact from the turn of events pushed it to be deemed an affected listed issuer on Jan 29, 2021, and it is now required to submit a regularisation plan by July 28 this year.

This came after it received its third six-month extension for its regularisation submission just earlier this month.

Shares in Landmarks ended one sen or 4.65% higher at 22.5 sen, giving the group a market capitalisation of RM146.66 million.

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