Ho Hup (5169), Malton (6181) settle Bukit Jalil land dispute

Ho Hup Construction Co Bhd and its subsidiary, Bukit Jalil Development
Sdn Bhd (BJD) have reached an amicable settlement with Malton Bhd's
unit, Pioneer Heaven Sdn Bhd, on the developmental rights of its 24.28
hectare (ha) land in Bukit Jalil.

The settlement was formalised
in a supplemental agreement to the Joint Development Agreement (JDA)
which the companies signed on March 16, 2010.

In a statement
today, Ho Hup said all parties have agreed that 20.23ha of land would
be allocated for the joint development, while the remaining 4.05ha
would be developed solely by BJD.

Furthermore, BJD would be
entitled to 18 per cent, instead of 17 per cent, of the estimated gross
development value, subject to a minimum of RM220 million.

Pioneer
Heaven, on the other hand, would pay the servicing of monthly interests
and the redemption of the secured loan of RM75 million from Insas
Credit and Leasing Sdn Bhd, on behalf of BJD.

"Pioneer Heaven
will also assist BJD in securing financing of up to RM20 million for
the development of the latter's 4.05ha land," it said.

In addition, Ho Hup has agreed to discontinue its appeal to the Federal Court and withdraw its suit to invalidate the JDA.

"The
resolution of the dispute will help facilitate and speed up the
company's proposed restructuring exercise to regularise its
operations," Ho Hup added. -- Bernama

+1 issue settled?