Malaysia Pacific Corp shareholders grill board members in 5-hour AGM

KUALA LUMPUR: Shareholders of financially strapped Malaysia Pacific Corp Bhd (MPC) questioned board members for five hours yesterday, lamenting on the lack of improvement in the financial performance of the ailing property development and investment firm.
MPC was designated a Practice Note (PN) 1 company for defaulting on its debts since March 2013 and recently designated a Practice Note 17 company, after its auditor Messrs BDO expressed a disclaimer opinion on its financial statements citing insufficient appropriate audit evidence to provide a basis for an audit opinion.
These developments have raised concerns over the ability of MPC to continue its business as usual. MPC is to submit its regularization plan within the next 12 months.
In a filing with the stock exchange yesterday, MPC said the loan documents pertaining to the restructuring of the revolving credits and overdraft facilities are still pending finalisation.
It made losses in three out of five years from financial year ended June 30, 2010 to 2014. For the financial year ended June 30, 2014, it reported a net loss of RM31.14 million against a net profit of RM36.61 million a year before.
MPC CEO Ch'ng Soon Sen (pix) declined to speak to reporters after the AGM here yesterday. A representative of the minority shareholder watchdog group (MSWG) also refused to comment.
According to a shareholder, William Tan, the MPC management is looking for a strategic partner to jointly develop the landbank the group has within Lakehill Resort City, Johor Baru in a bid to improve its financials.
"The priority would be to develop the land, then (they will sell) the land," he said.
MPC had in its annual report said that the group may consider surrendering the seven parcels of land measuring 188 acres charged to AmanahRaya Development Sdn Bhd (ARDSB) in lieu of payment of a RM115 million facility to ARDSB.
MPC however believes that the plots of land are worth more than loan sum.
The plots are part of MPC's entire 490-acre land in Johor Baru, which was last revalued in July 2008. Then, it carried a net value of RM241.32 million.
Its revenue contributor Wisma MPL, which is located at Jalan Raja Chulan, was valued at RM320 million as at Oct 14, 2014.
Ch'ng family's Top Lander Offshore Inc is the largest shareholder of MPC, with a 56.36% stake.