KUALA LUMPUR: Serba Dinamik Holdings Bhd says it is committed to fulfilling the coupon payment for its US$222 million sukuk.

The company, in a filing to Bursa Malaysia, clarified that the coupon payment due on November 9 this year was about US$7.0 million and not US$9.45 million reported by a business portal.

"Serba Dinamik has engaged and sought advice from our legal counsel as well as wrote to the sukuk agent to notify the sukuk holders on the correct amount due," it said.

Serba Dinamik said under the terms of agreement, the company has a 30-day period from the non-payment due date to cure and pay the overdue coupon obligations before triggering any dissolution event (event of default).  

"We are also proactively engaging all stakeholders to provide timely updates and clarifications as and when required," Serba Dinamik added.

Serba Dinamik extends its guarantee that it has no intention to default on the coupon payment and is taking all necessary steps to remedy the matter within the stipulated timeline.

Meanwhile, Malaysian Rating Corp Bhd (MARC) said the missed coupon payment signified liquidity stress faced by Serba Dinamik.

On this basis, MARC views that Serba Dinamik's ability to meet its financial obligations will continue to be strained.

Accordingly, the rating agency removed the ratings of Serba Dinamik's Islamic Commercial Papers and Islamic Medium-Term Notes Programme (ICP/IMTN) programmes from MARCWatch Negative and downgraded the ratings to MARC-4IS/BBIS.

"The outlook on the IMTN programme is negative. MARC will reassess the ratings upon a review of the statutory audited accounts, which will be issued by the extended deadline of November 30, 2021 and other relevant findings," it said.

MARC said the concern on the protracted delay to resolve Serba Dinamik's audit issues had now been compounded by the missed semi-annual coupon payment on the outstanding US$222 million senior sukuk issued by its wholly-owned indirect subsidiary, SD International Sukuk Ltd.

"The coupon payment became due on November 9, 2021. MARC has been informed by the issuer that it is seeking to make good on the payment within the 30-day grace period before an event of default is declared.

"Nonetheless, in light of this development, the rating agency notes that a cross default could be triggered on the borrowings under the ICP/IMTN programmes under which the outstanding of RM100 million ICPs is due in May 2022," it added.