Tuesday, September 11, 2012

PKR to SC: Probe Melewar Leisure, MBF Trustees

PETALING JAYA: Selayang MP William Leong wants the Securities Commission (SC) to investigate Melewar Leisure Sdn Bhd and MBF Trustees Bhd over allegations that the two companies cheated Melewar’s bond holders.

“The SC must investigate why there was no action from both companies for 12 years. It has to protect the interest of the bond holders,” Leong said after meeting 20 bond holders.

On Oct 12, 1994, Melewar issued bonds worth RM64,165,000 which expired on July 29, 1999. The bonds were secured with the Central Market building in Kuala Lumpur.

According to Leong, Melewar did not pay bond holders when the bonds matured.
On June 13 this year, bond holders were told in a letter that the value of their bonds was low and Melewar had found a new buyer, Riverfront Wealth Capital Bhd, that offered to buy the bonds at RM0.24 per unit.

This was followed by another letter on June 24 from Melewar stating that 75% of the bond holders have agreed to Riverfront’s offer.

“Some of the bond holders are actually upset since they will only get a 25% in return on their original investment. Why didn’t the trustee take action for the past 13 years?” asked Leong.

The PKR treasurer also questioned the logic in claiming that the bonds’ value was low when the company used Central Market to secure the bonds.
“Central Market is in the centre of the town,” said Leong.

The PKR leader said this case tarnished Malaysia’s wish to be a centre for initial public offering as seen in the Felda Global Ventures Holding share offering.

He also said that he is arranging a meeting to decide on the next course of action for all the affected bond holders on Sept 30 at the Selayang Utama Hall at 2pm. The hall is located opposite Selayang Mall.
Representatives from MBF Trustees and Melewar are also invited.
Contacted later, MBF Trustees’ representative declined to divulge any information.

Meanwhile, Melewar Trustees’ director Nick Lough acknowledged that MBF trustees was the sole bond holder.

“I have no idea about other bond holders,” he said, decling to comment further.

http://www.freemalaysiatoday.com/category/nation/2012/09/11/pkr-to-sc-probe-melewar-leisure-mbf-trustees/

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