16 Oct 2008
Ref: Meeting between PHUKB and Intelbest on the 16 Oct 2008 @530 pm
Aim: To understand the current situation that is facing the progress of the project.
Meeting Findings: At the meeting the following was highlighted
a. The committee express its frustration on the current situation and the lack of action on the side of the developer despite the full commitment of the committee in securing the approval of the purchaser in implementing the ES 176.
b. Intelbest informed and showed a document that, the bondholders has called for an EGM to take action to liquidate the company on the 15th Sept 2008. The company manage to take a court injunction to stop the action of the Bondholder.
c. The company informed that they are in the midst of selling a few properties and getting cash injection from Tan Sri Chan Ah Chye in ensuring the completion of the project. The cash injection is expected to take place before end of October 2008.
d. The committee reiterates that if would not be fair to subject the purchaser to additional financial exposure (risk) and pushed for a resolution that Intelbest will not seek any progress payment between now until the delivery of Vacant Possession. The committee presented three options for the company to consider and the management felt that the best option is to consider that ALL PROGRESS PAYMENTS TO BE DEFERRED UNTIL PURCHASERS WERE GIVEN THEIR VACANY POSSESSION OF THEIR UNITS. (I.E THE UNITS MUST BE COMPLETED FIRST BEFORE ANYMORE PAYMENT IS TO BE MADE)
e. The committee requested the for a meeting with the Trustee and the bondholders and Intelbest has agreed to organize the meeting next Thursday on the 23rd Oct 2008. The meeting ended at about 700 pm.
Committee Advice to Purchasers
1. To wait further advice from the committee with regards to progress payment. Until the official advice from the committee is given, purchasers are advice not to make any further payments to the developer.
2. To talk to their banks that gives loan on the possibility of restructuring their loan and in the process easing their current financial burden.
3. The project outlook on the completion by June 2009 looks very poor.
Dr Mohamed Rafick Khan