PETALING JAYA: Affin Hwang Investment Bank Bhd (Affin Investment) is taking legal action against a theme park which is a subsidiary of Perak Corp Bhd, the state’s investment arm.
According to theedgemarkets, Perak Corp said Affin Investment had on Wednesday appointed Duar Tuan Kiat of Messrs Ernst & Young as receiver and manager over Animation Theme Park Sdn Bhd’s (ATP) property.
The management powers of ATP’s directors were also suspended immediately, it said.
“The financial and operational matters of ATP are now under the responsibility of the receiver and manager,” the news portal quoted Perak Corp as saying.
The appointment, it added, is not expected to have any “immediate financial and operational effect” on Perak Corp’s remaining businesses.
The portal reported that ATP, which operates Movie Animation Park Studios in Ipoh, had defaulted in its repayment of principal payment totalling RM25.7 million.
The loan was granted by Affin Investment, Affin Bank Bhd, Bank Pembangunan Malaysia Bhd and Malaysia Debt Ventures Bhd. The theme park was built at a cost of RM520 million.
Affin Investment is said to have informed ATP that failure to effect the payment as demanded would “result in the secured obligations amounting to RM242.65 million from ATP becoming due and payable”.
To date, the news portal reported, ATP has defaulted in the repayment of the principal payment and the total secured obligations.