Business

Serba Dinamik to file appeal over winding-up order

Firm says proceeds from potential stake, assets sale involving associate company could be used to pay down group debts

Updated 3 years ago · Published on 11 Jan 2023 11:56PM

Serba Dinamik to file appeal over winding-up order
Serba Dinamik Holdings Bhd says the company is also appealing the high court’s decision yesterday to not allow the company’s application to adjourn the hearing of the winding up. – focusmalaysia.my pic, January 11, 2023

KUALA LUMPUR – The board of directors (BOD) of Serba Dinamik Holdings Bhd (SDHB) has today filed an appeal against the high court’s decision to wind up the company and its three subsidiaries.

In a statement, SDHB said the company also filed an appeal against the high court’s decision yesterday (January 10) to not allow the company’s application to adjourn the hearing of the winding up.

“The BOD wishes to further inform that the company’s wholly owned subsidiary, Serba Dinamik International Ltd (SDIL), would be applying to set aside the high court’s decision to wind up SDIL. The board has received advice that the order to wind up SDIL was made ultra vires,” the company said.

Meanwhile, SDHB said the BOD has instructed its solicitors to file an application to stay the high court’s order to wind up the company to ensure continuation of the company’s business pending a decision from the Court of Appeal.

“The board has also instructed its solicitors to file an application to stay the winding up of SDIL pending the hearing of application to set aside the winding up order made against SDIL,” the company said.

According to SDHB, the BOD wished to state that the company filed an application to seek an adjournment of the hearing of the winding up petition at the high court yesterday on the basis that, among others, the company was informed by the associate company of the group that the associate company is prepared to sell the stake of the associate company or the assets within the associate company for an estimated net proceeds of US$700 million (RM3.1 billion).

The company said SDIL’s share of the sale proceeds can be used to pay down the debts of the group.

“There is an active negotiation with the prospect on the proposed sale. With due respect, the BOD of SDHB takes the position that an adjournment of the hearing would allow the parties including the interim liquidator to deliberate on the proposed sale.

“The board trusts that an orderly sale of the assets of the company and its group will maximise return to the creditors of the group.

“Based on the aforesaid, the board would be exercising its residuary powers to appeal against the high court’s refusal to allow an adjournment of the hearing,” SDHB said.

On January 10, judicial commissioner Ahmad Murad Abdul Aziz allowed a petition filed by six financial institutions to wind up SDHB and its subsidiaries, SDIL, Serba Dinamik Group Bhd and Serba Dinamik Sdn Bhd.

The six financial institutions acting as the suit’s petitioners are Standard Chartered Saadiq Bhd, HSBC Amanah Malaysia Bhd, AmBank Islamic Bhd, MIDF Amanah Investment Bank Bhd, United Overseas Bank (Malaysia) Bhd, and Bank Islam Malaysia Bhd.

The four companies are said to have a total debt of close to RM5 billion. – Bernama, January 11, 2023

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