KUALA LUMPUR (Oct 3): Keck Seng (Malaysia) Bhd, which engages in palm oil cultivation and manufacturing, property development and investment, and hotels and resort ownership businesses, said it 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 GudangJohor. It does not have any subsidiary or associated company.

“TPGR has been operating under very difficult and challenging market conditions characterised by declining number of golfers, ageing assets, increased maintenance expenses and the severe repercussions of Covid-19. As a consequence, TPGR has incurred consistent financial losses over several years and has accrued substantial debts,” Keck Seng (Malaysia) said in a regulatory filing on Monday.

As of Sept 22, 2023, TPGR’s total outstanding liabilities to short-term unsecured creditors amounted to RM57.66 million. Keck Seng (Malaysia), as TPGR’s holding company, stands as its largest creditor.

“In light of TPGR’s ongoing inability to settle its outstanding debts to creditors, including its largest creditor, Keck Seng (Malaysia), it has been determined that continued financial support from Keck Seng (Malaysia) would not be commercially prudent. Although Keck Seng (Malaysia) has provided financial backing for a considerable number of years, given the circumstances, it is no longer feasible for TPGR to sustain its operations in the face of mounting liabilities,” it added.

Keck Seng (Malaysia) said it had made a statutory declaration pursuant to Section 440(1) of the Companies Act 2016 that TPGR cannot, by reason of its liabilities, continue its business, and appointed Leong May Lee of Perun Consultants as the interim liquidator to commence the creditors’ voluntary winding up (CVWU).

“The meetings of the TPGR shareholders and the creditors of TPGR are scheduled to be held within 30 days from the date of this announcement,” said Keck Seng (Malaysia).

It added that the winding up is not expected to have any adverse impact on the group’s earnings per share and net asset per share for the financial year ending Dec 31, 2023 (FY2023), as well as any operational impact.

As at end-December 2022,  Keck Seng (Malaysia)’s total amount of investment in TPGR was RM49.19 million and based on the management accounts made up to Sept 22, 2023, the advances to TPGR stood at RM57.23 million.

Keck Seng (Malaysia) said the group had made full impairment amounting to RM106.42 million in relation to its investment in TPGR and advances made to TPGR.

“Therefore, Keck Seng (Malaysia) is not expected to provide further material impairment in respect of the CVWU of TPGR for FY2023,” it added.

The CVWU does not require the approval of Keck Seng (Malaysia)’s shareholders or any other relevant authority.

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