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Liquidators of Park Hotel Management seek to wind up its subsidiary

Liquidators of Park Hotel Management seek to wind up its subsidiary

Source: Straits Times
Article Date: 06 Nov 2021
Author: Grace Leong

The winding up application was filed on Oct 25 with a High Court hearing scheduled on Nov 19.

The liquidators of Park Hotel Management have asked the High Court to wind up its wholly owned subsidiary, Park Hotel CQ.

The Straits Times understands that the winding-up application is an attempt by the liquidators to recover funds allegedly owed, although the specifics are unclear.

The application was filed on Oct 25, with a High Court hearing scheduled for Nov 19.

A notice in ST yesterday stated that Park Hotel Management is also a creditor of Park Hotel CQ. The former Park Hotel Clarke Quay had been leased to Park Hotel CQ, a tenant of Ascendas Hospitality Reit, the hotel's landlord.

Meanwhile, Singapore hospitality group Park Hotel Group said yesterday that it has "no involvement in those proceedings".

In August, the 336-room Park Hotel Clarke Quay was renamed Riverside Hotel Robertson Quay after CapitaLand unit Ascott International Management took over.

The change came after Ascendas Hospitality Reit terminated the lease agreement and took possession on Aug 28 because Park Hotel CQ had failed to pay $5.92 million in debt by June 30.

The hotel ceased to operate under the Park Hotel Clarke Quay name after Aug 27.

The hotel was built by Park Hotel Group and opened in 2009. The site was sold to Ascendas Hospitality Trust in 2013, according to Ms Tan Shin Hui, executive director of Park Hotel Group.

Park Hotel Group now manages two hotels here, down from six, after the landlords of Park Hotel Farrer Park, Park Hotel Clarke Quay and Destination Singapore Beach Road terminated their management contracts following the winding up of Park Hotel Management, a company that until recently owned Park Hotel Group.

In July, the High Court approved the winding up of Park Hotel Management over $5.2 million of debt owed in relation to the 308-room Grand Park Orchard, previously in Park Hotel Group's portfolio.

In September, Park Hotel Group said it terminated its management of Grand Park Orchard for "commercial and strategic reasons".

These developments have left Park Hotel Group running just Grand Park City Hall and Park Hotel Alexandra in Singapore.

Park Hotel Farrer Park, owned by RB Capital, is now Holiday Inn Singapore Little India, and is run by IHG Hotels & Resorts.

Ms Tan said: "This recent development involving Park Hotel Farrer Park was the result of a difference in contractual interpretation, not the result of any breakdown of the relationship with RB Capital or any unhappiness with our management."

In July, the owner of Destination Singapore Beach Road terminated a 15-year management agreement with Park Hotel Management and took over the 300-room hotel.

Before Park Hotel Management's winding up, Park Hotel Group had its ownership changed to Park Hotel Group Management on March 8.

The new owner is wholly owned by a British Virgin Islands company called Good Movement Holdings. It has one director, Ms Tan, who was appointed on March 1.

Source: Straits Times © Singapore Press Holdings Ltd. Permission required for reproduction.

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