KUALA LUMPUR (March 24): Four subsidiaries of Serba Dinamik Holdings Bhd have withdrawn their applications to be placed under judicial management in order to help restructure their financial health.

The application for withdrawal was submitted by Serba Dinamik Group Bhd, Serba Dinamik Sdn Bhd, SD Control Sdn Bhd and Serba Dinamik Development Sdn Bhd on Wednesday (March 23) through Messrs Syed Ibrahim & Co.

"Our firm (Serba Dinamik) has received instructions to withdraw the originating summons for the four cases as the creditors are opposed [to them being] placed under judicial management," the letter from the law firm stated.

Their applications were initially fixed to be heard on Thursday.

Following their withdrawal bid, judicial commissioner Nadzarin Wok Nordin, who presided over the afternoon proceedings, struck off all their judicial management applications and ordered the four to pay a total cost of almost RM300,000 to the financial institutions and creditors who were opposed to their initial applications.

Serba Dinamik cited strong opposition from creditors and financial institutions that had lent the subsidiaries money as the reason for the withdrawal of the applications.

Its legal counsel Mak Lin Kum told the court that Serba Dinamik is now considering a scheme of arrangement and will inform the creditors of the plan.

A scheme of arrangement under Section 366 of the Companies Act 2016 permits compromises and arrangements with the creditors and/or members of the company which are facing financial difficulties.

Earlier this month, Nadzarin dismissed the four companies' applications to be placed under interim judicial management following strong opposition from financial institutions which were the creditors in the applications.

The creditors in attendance on Thursday's (March 24) proceedings were HSBC Bank Malaysia Bhd, HSBC Amanah, MBSB Bank Bhd, Bank Rakyat, Hong Leong Islamic Bank, six other financial institutions which are syndicated lenders, Orient Arotek Engineering & Trading Sdn Bhd, Perisind Samudra Sdn Bhd, Izin Budi Sdn Bhd, Yicai Construction Sdn Bhd, Bank Pembangunan Malaysia Bhd and another company.

The six syndicated lenders were MIDF Amanah Investment Bank Bhd, AmBank Islamic Bhd, Bank Islam Malaysia Bhd, UOB, HSBC Amanah and Standard Chartered Saadiq Bhd, which were represented by Datin Jeyanthini Kannaperan.

HSBC Bank Malaysia and HSBC Amanah were represented separately by Benjamin Dawson, while Claudia Cheah and Karen Tan appeared for Hong Leong Islamic Bank, Datuk John Clark Sumugod for Bank Rakyat and MBSB, and Wafiy Azman for Bank Pembangunan.

During earlier proceedings in the past month, the court was told that the four companies had liabilities of RM6.45 billion while its assets were said to be worth RM7 billion.

The four Serba Dinamik subsidiaries on Feb 11 made an announcement to Bursa Malaysia that they had applied to be under judicial management to revive the financial health of the group.

Read also:
Four Serba Dinamik units fail in their bid to be placed under interim judicial management
Serba Dinamik’s units apply for judicial management to revive financial health

Source: TheEdge - 25 Mar 2022