|Company Name||SERBA DINAMIK HOLDINGS BERHAD|
|Date Announced||18 May 2022|
|Category||General Announcement for PLC|
SERBA DINAMIK HOLDINGS BERHAD ("THE COMPANY", WHICH TOGETHER WITH ITS SUBSIDIARIES ARE REFERRED AS "THE GROUP") APPLICATION FOR LEAVE TO PROPOSE A SCHEME OF ARRANGEMENT WITH ITS CREDITORS
The Board of Directors of the Company wishes to announce that its wholly-owned subsidiaries, Serba Dinamik Group Berhad (“SDGB”) and its indirect wholly-owned subsidiaries, Serba Dinamik Sdn Bhd (“SDSB”), Serba Dinamik Development Sdn Bhd (“SD Development”) and SD Controls Sdn Bhd (“SD Controls”) (SDGB, SDSB, SD Development and SD Controls are referred as “SD Subsidiaries”) have on 13 May 2022, filed an application under section 366 of the Companies Act 2016 to seek leave to convene a court-convened creditors’ meeting and for a restraining order to be granted over the SD Subsidiaries. Datuk Abdul Kadier Sahib, being a member of the Company, has similarly filed an application under section 366 of the Companies Act 2016 to seek leave for the Company to convene a court-convened meeting of its creditors, collectively, (“Applications for Scheme”).
CIRCUMSTANCES LEADING TO THE FILING OF APPLICATIONS FOR SCHEME
Since May 2021, there has been a series of events that has affected the cash flow of the Serba Dinamik Group due to the Covid-19 pandemic environment which has significantly slowed down the timing of payments by customers as well as the progress of the projects undertaken by the SD Group. This had in turn led to a high inventory level and the slowing down of the conversion of inventory to cash and cash equivalent, resulting in collection to slow down.
The Company and SD Subsidiaries have identified some assets for immediate sale to generate the cash flows required to meet the SD Group liabilities. The Company and its subsidiaries would require a court-convened meeting of its creditors to consider and if thought fit, to approve a scheme of arrangement to be proposed between the Company and its creditors to restructure the debt obligations of the Company and its subsidiaries.
The Board of Directors of the Company is of the view that the Applications for Scheme are in the best interest of the SD Group and its creditors as the proposed scheme of arrangement proposes a 100% return to the Company’s creditors.
The Applications for Scheme has been fixed for hearing on 19 May 2022.
The Company will make further announcement as and when there are material developments on the above matter.
This announcement is dated 18 May 2022.