Business

Serba Dinamik Group defaults on RM435-mil financing facilities

This involves arrangements with several banks, it says today

Updated 3 years ago · Published on 07 Jul 2023 10:14PM

Serba Dinamik Group defaults on RM435-mil financing facilities
The default in payment will give rise to several other potential events of default of the indebtedness under the company by virtue of the cross-default provision under the respective financing agreement, says Serba Dinamik Holdings Bhd today. – Focus Malaysia pic, July 7, 2023

KUALA LUMPUR – Serba Dinamik Group Bhd (SDGB), a wholly-owned subsidiary of Serba Dinamik Holdings Bhd (Serba Dinamik), has defaulted its repayments on three financing facilities amounting to RM435.41 million.

The defaults comprise an RM400.77-million club financing arrangement provided by MBSB Bank Bhd and Bank Kerjasama Rakyat Malaysia Bhd (club banks), RM34.41 million Tawarruq Term Financing-i by Affin Islamic Bank Bhd (Affin Bank), and RM228,568 Bai’ Inah Facility by Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank).

In three filings with Bursa Malaysia today, Serba Dinamik said the default in interest payment for the facility with SME Bank had been fully settled as of June 1, 2023, while to address the interest default with the club banks and Affin Bank, SDGB’s liquidator team has reached out to the banks to discuss an outcome that serves the best interest of everyone.

The group said that in the event of a default in payment, Affin Bank has a first-party legal charge over a building bearing the postal address Menara Serba Dinamik in Shah Alam, Selangor.

“The club banks have first-party legal charge over several parcels of land owned by SDGB in Kota Tinggi, Johor. 

“The default in payment will give rise to several other potential events of default of the indebtedness under the company by virtue of the cross-default provision under the respective financing agreement,” it said.

On January 1, 2023, Victor Saw Seng Kee of PricewaterhouseCoopers Advisory Services Sdn Bhd was appointed as liquidator of Serba Dinamik, SDGB, Serba Dinamik Sdn Bhd, and Serba Dinamik International Ltd. – Bernama, July 7, 2023

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