Aspen Glove files winding up petition

This came following the termination of its asset and interest disposal proposal.

Aspen Glove Sdn. Bhd. (AGSB), a subsidiary of Aspen (Group) Holdings filed a winding-up petition to the High Court of Penang following the termination of its proposal to dispose of its assets and interest.

In a disclosure, Aspen Group said it proposed to dispose of its lease land in Negeri Kedah in Malaysia and the factory buildings built on it to Cambridge Real Estate Partners and to Sustainable Waste Management Holdings to place AGSB in a “better financial proposition and discharge AGSB’s payment obligations.

The proposals were both terminated and AGSB then entered into a Deed of Mutual Termination with Kilim Technology Park Corporation to terminate the lease agreement and surrender the land and factory buildings.

AGSB has since stopped operations since it surrendered the lease land and factory buildings to KTPC.

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“Given AGSB’s unsuccessful attempts to dispose of its interest in the Lease Land and Factory Buildings, the surrender of the Lease Land and Factory Buildings to KTPC, mounting legal claims and suits faced by AGSB and the current financial position of AGSB, the directors and shareholders of AGSB have re-assessed the situation of AGSB and formed the view and has accordingly resolved that AGSB is unable to pay its debts based on actual and/or contingent liabilities and is cash flow insolvent,” the disclosure read.

“[T]hat the Winding Up Petition is in the best interests of AGSB and its creditors as it ensures an orderly wind down of the affairs of AGSB under the control of a Court-appointed liquidator; and is the most time-efficient and cost-effective manner to liquidate AGSB,” Aspen added.

Aspen added that after the winding-up, the expected gain on derecognition of the subsidiary for the Group will be around $9.3m (RM32.3m), reaching about $39.4m (RM135.8) after taking into account the deed of mutual termination and lease agreement.

S$1 = RM3.45

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