In August 1998, the management of Pidemco Land Ltd was studying a proposal put forward by Credit Agricole Indosuez Merchant Bank Asia for the company to give them an opportunity to buy a plot of land for residential development in Bukit Timah Road, Singapore. Credit Agricole Indosuez Merchant Bank was arranging for Orchard Parade Holdings Limited to issue a S$90 million 5-year medium term note through its wholly owned subsidiary, OPH Orion Pte Ltd. Under the proposed deal, Pidemco Land was to provide an option to OPH Orion and the holders of their medium term notes. OPH Orion Pte Ltd and Winace Investment were joint shareholders of a company called Blissville Properties Limited, owner of a plot of freehold land in Bukit Timah Road. Exercising the option would enable them to sell their shares and debentures in Blissville Properties Limited to Pidemco Land. In return for the option, Pidemco Land was to receive an undertaking fee upfront. The option, in effect, provided credit support for the 5-year medium term note thus enhancing the probability of a successful subscription of the notes during this difficult period. The Asian currency crisis that began in July 1997 brought more Asian economies, including Singapore, into major recession. The property market in Singapore slumped, resulting in a credit squeeze in the property market. The market outlook in the shot and medium terms looked bleak. The management wondered if they should accept the proposal and if so, how much to ask from Orchard Parade Holdings. Period covered 1998