Paradise Malacca Village Resort (MBf)

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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C

Monday, April 07 2003, Vol. 6, No. 68

MBF HOLDINGS: Unit Proposes Revised Scheme of Arrangement
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In 1992, MBf Property Services Sdn Bhd (MBfPS), a then wholly-
owned subsidiary of MBfH and registered owner of the master
title for Paradise Malacca Village Resort (PMVR) had entered
into Sale and Purchase Agreements of a Lease for Hotel Apartment
Suites (SPA of Lease) in PMVR with purchasers. Subsequently MBf
Hotels entered into sublease agreement with the unit owners of
PMVR in return for an annual 8% guaranteed return over a period
of 3 years with an automatic renewal option for another 3 years,
which expired in years 2000 and 2001.

MBf Hotels had suffered losses in the running of the hotel
suites and was unable to pay the guaranteed rental. As a result
of financial deterioration over time and potential legal suites
which may result in substantially lower returns to all creditors
of MBf Hotels, a revised SOA is proposed to address the
abovementioned situation.
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