SERDANG, April 13 — Tan Sri Lee Kim Yew, founder and adviser of Country Heights Holdings Berhad (CHHB), insisted today he is still “solidly solvent” despite an existing Adjudication Order and Receiving Order (AORO) declaring him bankrupt by the High Court in January.
Lee said the AORO issued by the High Court on January 26 stemmed from a petition filed by one of his former consultants based in the United States over the sum of RM3 million allegedly owed to him.
The former consultant, who goes by the name Gerald Patrick Healy, is a US citizen with a legal background and a former officer of Lee's US-based Club Excellence Inc, which has since wound up.
Following the winding-up of the company, Lee said Healy then sought an arbitration order against him without his presence due to existing Covid-19 travel restrictions at that time.
Lee said Healy later obtained a judgment in the latter’s favour.
“He then brought the US arbitration court's RM3 million judgment to Malaysia, by making use of Malaysian bankruptcy law to make me a bankrupt,” Lee told a press conference here.
He said the news of his alleged bankruptcy has disturbed the existing peace and harmony, as it has affected a lot of those close to him when it broke out.
Lee insisted he never chose to be a bankrupt or intended to file for bankruptcy, saying the dispute between him and Healy was a “dirty trick” the consultant used to personally attack him as both men were once friends.
“He worked for me, and we were friends. We could have negotiated amicably but he chose to do this unprofessionally. He could have chosen a better way,” Lee said.
He explained after the January 26 court order, both sides then sought an amicable resolution.
Negotiations between their lawyers took place to set aside the order after Healy realised it was a mistake.
Lee said the negotiations are still ongoing, but added that Healy suddenly discharged his counsel and appointed a new one on the same day the e-Insolvency bankruptcy search result transaction was recorded.
“Who was the one on the 10th of April downloaded from the Department of Insolvency? I leave it to the press to judge.
“Who is the one using this dirty trick instead of following the law of Malaysia?” he asked.
Asked why he did not attempt to settle the initial RM3 million sought by Healy, Lee said the latter chose the unprofessional route instead of negotiating for a settlement amicably.
Asked what he intends to do next, Lee said he is awaiting a notice from the Department of Insolvency and has since written to the government to allow his counsel to continue negotiations for an order to set aside the bankruptcy declaration.
“Failing which, I will file my Statement of Affairs to the department's director-general by depositing RM3 million for them to deal directly with Patrick,” he said of his former friend who is named as a creditor.
Under the Insolvency Act, bankrupts are restricted from going abroad, acting as a director, carrying on business and requirement to contribute to their bankruptcy estate regularly for the benefit of the creditors.
There is no automatic discharge from bankruptcy in Malaysia and can only be discharged by the court or the Department of Insolvency director-general, subject to any creditor’s objection.
