Hatten Land has received a notice of default dated Jan 30 from Haitong International Financial Products (Singapore) over a US$20 million convertible loan.

The loan, extended back on May 21 2020, was to help finance the Hatten City Project, among others.

The loan is secured by a corporate guarantee from a Hatten Land subsidiary in Malaysia, a charge of over 760 million Hatten Land shares, 345 retail units within the project, plus personal guarantees by "certain directors" of Hatten Land. They were not named.

This update via the stock exchange was issued in the name of Colin Tan, Hatten Land's executive chairman and managing director.

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According to Hatten Land, Haiton is asking for US$21.5 million (including interests) to be paid within five business days of Jan 30.

After a follow-up with Haitong, Hatten Land says the former has "prepared to agree to withhold taking recovery actions" until March 31.

In the meantime, the parties are negotiating a settlement agreement.

Hatten Land shares last changed hands at 1.5 cents.