Chronicle of events on Newgate project

Re: Update from Newgate Protem Committee

Posted by: "Chew Chee Seng" cheeseng@mpsb.net chew_chee_seng

Sun Jun 20, 2010 6:22 am (PDT)

Dear all,

For the benefit of all purchasers of Newgate Avenue, here’s the chronicle of events from 2007 till now.

2007

A Newgate 21 Purchaser Protem Committee was formed in 2007 due to the fact that the appointed developer Pinggirran Setia Sdn Bhd has failed to deliver their obligation to construct the apartment according to contract’s terms and conditions.

June 2008.

RHB and PWC that they have given Pinggirran Setia until 30th June 2008 to submit its debt restructuring proposal.

Sept 2008

RHB Bank confirming that they are taking legal action against Pinggiran Setia Sdn Bhd (PS) for failing to service the loan. The PS’s contractor Ehsan Bina has completely removed the passenger hoist (Construction lift) from the site.

Oct 2008:

RHB has appointed PWC as receiver and manager (R&M) for the revival of Newgate Avenue project as of 22nd September. PWC will need at least 2 to 3 months to prepare the tender documents.

Feb 2009:

Tender was called.

March 2009:

Tender Closed.

June 2009:

PWC and RHB is going to award the tender to successful bidder.

August 2009:

PWC submitted the “winning Bid” to RHB Bank

Oct 2009:

RHB Bank wasn’t very happy with the repayment commitment from the “Winning Bid” and PWC were asked to revert RHB’s opinion to the developer

Nov 2009:

RHB Bank had officially informed PWC few days ago that they have accepted PWC selected winning developer. PWC on the other hand has delivered the letter of award/acceptance (LOA) to the winning developer called “Sumbangan Legenda Sdn Bhd” and I believe the developer has return the signed letter of acceptance by now.

Feb 2010:

Sales and Purchase Agreement 9SPA) is being drafted.

March 2010:

The execution of S&P has delayed due to some issue to do with Pinggiran Setia. The new developer Sumbangan Lagenda Sdn Bhd (SLSB) is still keen to pursue and is currently addressing the issue together with the PWC.

April 2010:

The former contractor Ehsan Bina has filed a caveat to the title of the Newgate project. This action threw a spanner into the SPA signing process between Pinggiran Setia (Managed by receiver manager PWC) and the winning bidder Sumbangan Lagenda Sdn Bhd. The inability of PWC to find an amicable solution with Ehsan Bina has caused the SPA not being signed until now.

Nevertheless, RHB Bank has decided to take over the role of PWC to negotiate with Ehsan Bina as it is as important to RHB Bank as it is to us to solve the caveat problem as soon as possible. As a matter of fact, I am sure you will be delighted to know that RHB Bank has walked the talk by sub-contract Sumbangan Lagenda to clear the bush of the project site and re-fence the whole project site.

May 2010:

RHB solved the problem with Ehsan Bina Sdn Bhd.

June 2010:

SPA is being signed.

At present:

PWC is looking for venue to call all purchasers for meeting with PWC and Sumbangan Lagenda Sdn Bhd (SLSB). We will be informed the proposed “NEW” terms and conditions. I am not sure PWC will call the Newgate Purchaser Committee to discuss with SLSB before meeting all the purchasers as promised earlier. Nevertheless, I think it makes no difference as all we want is the Newgate Project to be revived ASAP.

Thanks.