Chin Hin Property JV wins one-month extension on RM35.4m Fiamma settlement

Chin Hin Group Property Bhd's joint-venture company has been given a one-month extension, to Oct 21, to settle the remaining RM35.4 million owed to Fiamma Holdings Bhd. The company has so far paid RM110.7 million of the settlement amount.

PETALING JAYA (Sept 22): The deadline for Chin Hin Group Property Bhd’s joint-venture (JV) company to settle the remaining RM35.4 million payable to Fiamma Holdings Bhd has been extended by one month to Oct 21.

In a Bursa Malaysia filing on Monday (Sept 21), Chin Hin Property said RM110.7 million of the settlement amount had been paid to Fiamma to date.

Its wholly-owned subsidiary BKG Development Sdn Bhd (BKGD), Fiamma and their JV company Sinaran Urusjuta Sdn Bhd (SUSB) mutually agreed to the extension in accordance with their shareholders’ agreement. SUSB is required to repay and/or redeem the outstanding settlement amount to Fiamma by the extended deadline.

The latest extension follows an earlier agreement on Aug 21 to extend the repayment deadline by one month to Sept 21.

BKGD holds a 70% stake in SUSB, while Fiamma owns the remaining 30%. SUSB owns a 1.88-acre leasehold commercial site earmarked for a mixed-use development near the Kuala Lumpur city centre.

Under the joint venture, BKGD subscribed for 1.17 million new shares in SUSB for RM1.17 million, giving it a 70% stake in the enlarged company. The JV was completed on May 21. It was classified as a related-party transaction because Chin Hin Property and Fiamma have common major shareholders.