Aseana Properties Ltd - Property developer in Malaysia and Vietnam - Says it is still making progress on the sale of its Sandakan hotel asset, as well as the adjacent Harbour Mall Sandakan asset, and that an extension has been made to the sale and purchase agreement. Explains that payment of part of the purchase price is being arranged.

Meanwhile, expects the repayment of the remaining medium term notes is ‘to occur shortly’. These notes were used to fund the construction of the Sandakan assets, and were due to be paid on Friday. According to Aseana, the banking syndicate that provided these loans served notice on Friday that as the notes have not yet been paid, this has created an event of default, meaning there is now a thirty-day cure period within the terms of the notes. Aseana is engaging with the trustee to the notes to seek a sixty-day extension of the repayment date from the note holders.

Further, adds that financing is still being arranged by the purchaser of the 32 unsold residences at The RuMa Hotel & Residences in Kuala Lumpur. This is now expected to be secured by the end of January.

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