Nam Fatt disposes of land to Great Doctrine, Teka Maju

KUALA LUMPUR: Nam Fatt Corp Bhd's unit, Maddusalat Bhd, will dispose of four pieces of land in Selangor to Great Doctrine (M) Sdn Bhd and Teka Maju Sdn Bhd for RM68 million.

In a filing to Bursa Malaysia on Friday, Nov 12, it said the disposal of the land to Great Doctrine was expected to result in a net loss of RM60 million.

"The deal (Lot 740) with Teka Maju, however, was expected to result in a net gain of RM14.3 million," it said.

Nam Fatt said it was in the midst of formulating a proposed scheme of compromise with its creditors.

"The land disposals are for the purpose of resolution with creditors under the proposed scheme," it said.

It said the net proceeds, after deducting expenses for the disposal of Lot 740, would be used for partial repayment of outstanding loan granted by OCBC Bank (M) Bhd and Ambank (M) Bhd to Nam Fatt Construction Sdn Bhd.

"Upon the repayment, OCBC Bank will discharge the charge created on Lot 740 in favour of itself as security agent," it said. — Bernama