I'm still 'solidly solvent', says Malaysia tycoon Lee Kim Yew as he denies bankruptcy allegations
Malaysian tycoon Lee Kim Yew who is the founder of property conglomerate Country Heights Holdings Bhd. (Photo: Facebook/丹斯里 李金友 Tan Sri Lee Kim Yew)
KUALA LUMPUR: Malaysian tycoon Lee Kim Yew has denied the bankruptcy allegations made against him, saying that he is still “solidly solvent”.
According to The Star, Mr Lee explained that a bankruptcy notice was filed against him at the Malaysian Insolvency Department (MDI). The notice was based on a US arbitration court judgment.
"I am far away from insolvency. I am solidly solvent as an entrepreneur in Malaysia. I don't choose to be bankrupt. I don't want to be bankrupt. I never declared myself to be bankrupt nor filed for bankruptcy," Mr Lee was quoted as saying by The Star on Thursday (Apr 13).
According to Mr Lee, the bankruptcy notice was filed by a US citizen, who goes by the name Gerald Patrick Healy and the latter was a former employee of a company of his in the United States called Club Excellence Inc., which was wound up.
The former employee had sued him personally for RM3 million (US$681,508) at the US arbitration court, which ruled in Mr Healy’s favour.
Mr Lee added that negotiations are still going on and that Mr Healy's lawyer had used the US arbitration court decision to file for bankruptcy against him in Malaysia.
He also said that he would file an appeal with the MDI and "deposit RM3 million cash for MDI to deal with Healy" if the negotiations fail.
The 68-year-old is the founder of Country Heights Holdings Bhd (CHHB).
The company website describes CHHB as a property conglomerate that primarily focuses on property development and investment holdings. Among its commercial property developments include the popular Mines Beach Resort hotel and 5-star luxury hotel Palace of the Golden Horses, both located in Selangor. The company also owns several other residential properties.
Speaking to reporters on Thursday, Mr Lee also noted that due to his bankruptcy status, he had resigned from all of his companies' boards of directors.
On Wednesday, Free Malaysia Today (FMT) reported that Mr Lee had been declared bankrupt by the Shah Alam High Court. According to the report, checks on the e-Solvency website reportedly found that he was declared bankrupt on Jan 26.
Subsequently, other local media outlets also reported that he was declared bankrupt.
Later on Wednesday, Mr Lee clarified that he had not filed for bankruptcy but was instead declared bankrupt by a third party over a RM3 million lawsuit.
"I did not file for bankruptcy. This particular party declared me bankrupt over a RM3 million suit,” Mr Lee was quoted as saying by the New Straits Times.
According to The Star, Mr Lee is the largest shareholder of CHHB with a 57.64 per cent stake.
He reportedly resigned as executive chairman of the company on Feb 3, citing a need to "cater for a change in management for the transformation of the group".
