KHSB settles suit out of court

KUALA LUMPUR: Kumpulan Hartanah Selangor Bhd (KHSB), the state government’s property investment arm, is settling its legal suit with Brisdale Holdings Bhd out-of-court.

According to an announcement, both parties have entered into a deed of compromise to formalise the terms of settlement.

As part of the salient terms of the deed, Brisdale will withdraw the legal suit against KHSB, and in turn, both parties will try to dispose of the related properties.

When contacted, KHSB declined to reveal additional information on the suit such as the damages claimed and the valuation of the properties in question.

The settlement is not expected to have any effect on KHSB as the carrying value of the properties has been fully impaired. However, any gain from the sale of the properties as per the settlement will contribute positively to KHSB’s earnings.

Brisdale will undertake to sell the properties, which form part of the master debt settlement agreement (MDSA) dated April 30, 2007, to any interested party within three months.

If Brisdale fails to dispose of the properties within that time, KHSB shall be entitled to procure interested parties to purchase the said properties within the next three months.

Subsequently, if KHSB fails to procure the sale of the properties, both parties will mutually be entitled to either accept or reject any offer to purchase the properties from any interested parties with the highest offer price.

Net proceeds will be shared equally between both parties.