Sabah Development Bank open to debt write-down to revive stalled PacifiCity project
KOTA KINABALU (Sept 22): Sabah Development Bank Berhad (SDB) is willing to consider a substantial reduction in its outstanding debt exposure to support efforts to revive the long-abandoned PacifiCity project. SDB said it remained supportive of efforts to find a viable solution for purchasers affected by the stalled development. The bank revealed in a statement [...] The post Sabah Development…
KOTA KINABALU (Sept 22): Sabah Development Bank Berhad (SDB) is open to a significant reduction in its outstanding debt to aid the revival of the PacifiCity project. The bank highlighted its support for solutions for purchasers impacted by the stalled development. The project, financed by SDB, has RM300 million in outstanding debt, despite the land being secured by the bank.
The High Court dismissed claims against the bank on July 31, 2025, ruling it was merely the project's financier. SDB clarified it is not the registered owner of the land, which belongs to Maksak. Following the developer's winding-up and court-appointed liquidators managing the project, SDB stated no investor has submitted a firm proposal to revive the development, with securing substantial capital being the main hurdle.
Despite the debt, SDB remains willing to consider a substantial reduction to support a viable rescue plan and attract potential investors. The bank remains committed to collaborating with the private liquidator, authorities, purchasers, and other stakeholders to explore practical solutions. PacifiCity Buyers group representative Winston Liaw Kit Siong urged the state government to step in, as the issue could not be resolved through a single meeting.
Written by urgent.news from Borneo Post Online's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
