Business

Serba Dinamik to seek leave from court for payment obligation resolution

Proposed arrangement would address full amounts to creditors, says embattled firm

Updated 4 years ago · Published on 10 May 2022 9:54PM

Serba Dinamik to seek leave from court for payment obligation resolution
At this juncture, Serba Dinamik Holdings Bhd says the company and its group of companies have sufficient operating cash flow capability to continue to perform existing contractual obligations in respect of non-borrowing related contracts. – Focus Malaysia pic, May 10, 2022

KUALA LUMPUR – Serba Dinamik Holdings Bhd (SDHB) is taking steps to seek leave from the high court to allow the company to convene one or more court-convened creditors meeting to present one or more scheme(s) of arrangement to seek a constructive resolution to the company and its subsidiaries’ payment obligation.

The company is responding to the queries from the creditors and its trading partners regarding the winding-up petitions on SDHB and its group of companies.

It said the proposed scheme of arrangement would address 100% of the amounts to creditors of Serba Dinamik Group including the petitioners. 

The winding-up petitions were served by HSBC Amanah Malaysia Bhd, Ambank Islamic Bhd, Bank Islam Malaysia Bhd, MIDF Amanah Investment Bank Bhd, Standard Chartered Saadiq Bhd, and United Overseas Bank (Malaysia) Bhd. 

“The company trusts that an actual winding up of SDHB, Serba Dinamik Group Bhd (SDGB), Serba Dinamik Sdn Bhd (SDSB), and Serba Dinamik International Ltd (SDIL) could be averted once the draft scheme proposal is made available to creditors,” it said in a filing with Bursa Malaysia today.

At this juncture, SDHB said the company and its group of companies have sufficient operating cash flow capability to continue to perform existing contractual obligations in respect of non-borrowing related contracts. 

“The company will make further announcements as and when there are material developments on the above matter,” it said.

Meanwhile, the company said it had received Bursa Malaysia Securities Bhd’s request for additional information on the winding-up petitions by the syndicated lenders yesterday. 

It said the additional information was on particulars of the claim under the petition, including the amount claimed, interest rate and details of the default or circumstances leading to the filing of the winding-up petition against SDHB and its group of companies.

“It is the syndicated lenders’ contention, among others, that the company fails to pay the instalment sum of RM99 million under the Master Murabahah Agreement dated December 17, 2019 and Supplemental Master Murabahah Agreement dated February 12, 2022 on December 20, 2021. 

“The syndicated lenders contend that the company and its subsidiaries’ failure to fulfil the contractual obligations had resulted in the issuance of an acceleration notice dated March 18, 2022 stipulating the total outstanding stood at RM1.78 billion and US$42,376.67,” it said. 

The company also stated that SDGB remains the wholly owned subsidiary of the company, while SDSB and SDIL are the wholly owned subsidiaries of SDGB.

“The total cost of investment in each of these subsidiaries were SDGB (RM531.80 million); SDSB (RM49.55 million); and SDIL (RM219.09 million),” it said. 

The company and subsidiaries were served with the winding-up petitions on April 28, 2022.

The winding-up petitions have been fixed for case management on July 1, 2022 and the hearing on July 6, 2022. – Bernama, May 10, 2022

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