Keck Seng (Malaysia) Bhd will wind down operations and voluntarily liquidate its 99.97%-owned subsidiary, Tanjong Puteri Golf Resort Bhd (TPGR).
TPGR, formerly known as Victavest Holdings Sdn Bhd, operates a 54-hole golf course in Pasir Gudang, Johor.
According to a stock exchange filing, TPGR has been operating under very difficult terms and challenging market conditions, with a diminishing number of golfers, ageing assets, and other factors.
“As a consequence, TPGR has incurred consistent financial losses over several years and has accrued substantial debts,” Keck Seng stated.
The holding company of TPGR, Keck Seng (Malaysia), also engages in the production and production of palm oil, real estate investment and development, and hotel operations.
According to the statement, as of 22nd September 2023, TPGR owed RM57.66 million in total to short-term unsecured creditors.
It declared that TPGR’s persistent failure to pay off its commitments to creditors, including its biggest creditor, Keck Seng (Malaysia) would make it impractical for the organisation to continue providing financial support.
The group claimed that after years of financial support from Keck Seng (Malaysia), TPGR is no longer able to carry on with operations due to rising obligations.
On 2nd October 2023, TPGR made a statutory declaration that it cannot continue its business due to its liabilities and appointed an interim liquidator to begin the creditors’ voluntary winding up.
Meetings of TPGR shareholders and creditors are scheduled to take place within 30 days of the date of this announcement, it said.
The winding up will not negatively affect the group’s earnings per share and net asset per share for the fiscal year ending December 31, 2023 (FY2023), nor will it have any operational effects, according to Keck Seng (Malaysia).
Keck Seng (Malaysia) had invested RM49.19 million in total in TPGR as of the end of December 2022, and RM57.23 million had been advanced to TPGR based on management accounts prepared up to 22nd September 2023.
The group had fully impaired the RM106.42 million it had invested in TPGR and advanced to the company.
Keck Seng (Malaysia) is therefore not anticipated to disclose any further material impairment in connection with the winding up of TPGR for FY2023, it stated.