A tough job at troubled Country Heights

IT is rare for the chief executive officer (CEO) of a public-listed company to resign shortly after taking on the job.

This week Country Heights Holdings Bhd CEO Mohd Rizal Zubair resigned from the position barely two months after taking the helm.

The reason stated in the filing was that he had resigned to pursue personal interests.

Prior to joining Country Heights, Mohd Rizal was group CEO of UKM Holdings Sdn Bhd, the investment and commercial arm of Universiti Kebangsaan Malaysia.

There, he oversaw businesses spanning investment holdings, healthcare, consulting and real estate.

It remains unclear what attracted him to the challenge of leading Country Heights, a company grappling with significant financial difficulties.

The company was quick to clarify that Mohd Rizal’s resignation was not due to any disagreement with the board on matters relating to the group’s operations, policies, financial affairs, corporate governance or any other matter requiring disclosure.

Country Heights has long been beset by financial challenges and legal disputes.

Last October, its auditor flagged a material uncertainty regarding the company’s ability to continue as a going concern.

For the financial year ended June 30, 2025, the company recorded losses of RM286mil at the company level and reported negative equity of RM526.3mil.

It has also defaulted on loans and is facing multiple winding- up petitions, including one from the Inland Revenue Board.

Other issues include the liquidation of subsidiary Mines Waterfront, a land forfeiture dispute involving the Sarawak government, and the seizure of RM126mil in fixed deposits belonging to founder Tan Sri Lee Kim Yew by the tax authorities in May 2025.

That said, the company has announced a recovery plan that includes cost rationalisation, asset disposals, fundraising exercises, debt restructuring, stronger receivables collection and tighter credit control measures.

However, asset disposals alone do not appear sufficient to generate the funds required to restore the company’s financial health.

Interestingly, new initiatives include a proposed injection of RM554mil worth of assets by Lee.

Country Heights remains listed with a paltry market capitalisation of RM55mil.

Whether it can emerge from its long-standing doldrums remains an open question.