Creditors vote in favour of Serba Dinamik's scheme of arrangement

KUALA LUMPUR (July 25): Serba Dinamik Holdings Bhd said its creditors have approved the scheme of arrangement proposed by the group and its four subsidiaries, with between 83% and 100% creditors voting in support of it.

The group itself garnered 95.74% support from its creditors, while its subsidiaries Serba Dinamik Group Bhd (SDGB) received 100%, Serba Dinamik Sdn Bhd (SDSB) received 99.21%, SD Controls Sdn Bhd received 86.43% and Serba Dinamik Development Sdn Bhd (SDDSB) secured 83%.

The voting was held at a court convened meeting at the Ideal City Convention Centre, Shah Alam, on Monday morning (July 25).

A source familiar with the matter told The Edge that the scheme of arrangement will proceed as more than 75% votes from its creditors were received.

It is understood that under the scheme of arrangement, creditors will get 15% of what is owed by Serba Dinamik, SDGB and SDSB, with the balance to be worked out in another scheme of arrangement possibly by the end of the year.

“The balance 85% of the outstanding debts shall be dealt with in subsequent schemes as more assets are sold by entities within Serba Dinamik and other cash flow sources arising from existing and new businesses from within the Serba Dinamik group,” the scheme of arrangement sighted by The Edge stated.

The other two companies, SD Controls and SDDSB, will fully repay their debts, according to the scheme.

SD Controls, SDDSB and SDSB are subsidiaries of SDGB, which is in turn a subsidiary of Serba Dinamik.

It was reported last month that the creditors had reached a settlement with Serba Dinamik with the scheme of arrangement and would hold their applications for a winding-up petition against Serba Dinamik and its subsidiaries, provided the companies do not default on the payment of debts, as proposed under the scheme. This resulted in a consent order being recorded at the High Court when the application for the scheme of arrangement came up for hearing before Justice Atan Mustaffa Yussof Ahmad.

The lenders — comprising six syndicated and bilateral lenders, namely HSBC Amanah Malaysia Bhd, Ambank Islamic Bhd, Bank Islam Malaysia Bhd, MIDF Amanah Investment Bank Bhd, Standard Chartered Saadiq Bhd and United Overseas Bank (Malaysia) Bhd — had filed the winding-up petition against the companies in April after they failed to service their RM1.2 billion syndicated term financing.

Subsequently, Serba Dinamik and its subsidiaries filed for a restraining order against the creditors and proposed the scheme of arrangement in June to restructure the group's debt obligations, which proposed "a 100% return to the company's creditors". At that time, the group said it had identified "some assets for immediate sale" to generate the cash flow required to meet the group's liabilities.

Serba Dinamik is also facing another suit by Malaysian Trustees Bhd, the trustee of Serba Dinamik’s RM100 million Islamic Commercial Papers (ICP), which the company had defaulted on. The papers are being held by Amanahraya Investment Management Sdn Bhd (ARIM), a wholly-owned unit of Amanah Raya Bhd.

In April, the group, alongside four senior company officials were fined a total of RM16 million for submitting false statements regarding its RM6.01 billion revenue in the 12-month period ended Dec 31, 2020 (FY2020)

Shares of Serba Dinamik rose half a sen or 6.25% to settle at 8.5 sen on Monday, giving the group a market capitalisation of RM316.81 million.

https://www.theedgemarkets.com/article/creditors-vote-favour-serba-dinamiks-scheme-arrangement

We refer to the Company’s announcements on 18 May 2022, 3 June 2022, 9 June 2022 and 30 June 2022. Unless indicated otherwise, all terms and expression used herein shall have the meaning assigned them under those announcements.
The Board of Directors of Serba Dinamik Holdings Berhad ("Serba" or the "Company") is pleased to announce that resolutions set out in the following notices of Court Convened Meeting of the following Scheme Companies were duly passed by the Scheme Creditors by way of poll:
(a) notice of meeting dated 30 June 2022 of Serba Dinamik Holdings Berhad;
(b) notice of meeting dated 30 June 2022 of Serba Dinamik Group Berhad;
(c) notice of meeting dated 30 June 2022 of Serba Dinamik Sdn Bhd;
(d) notice of meeting dated 30 June 2022 of Serba Dinamik Development Sdn Bhd; and
(e) notice of meeting dated 30 June 2022 of SD Controls Sdn Bhd.
The results of the poll were verified by the Sky Corporate Services Sdn Bhd, the Independent Scrutineer appointed by the Scheme Companies. A copy of the polling results is attached for reference.
This announcement is dated 25 July 2022.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3278283

JPMorgan Sees ‘Stratospheric’ $380 Oil on Worst-Case Russian Cut

July 2, 2022 at 3:59 AM GMT+8

Global oil prices could reach a “stratospheric” $380 a barrel if US and European penalties prompt Russia to inflict retaliatory crude-output cuts, JPMorgan Chase & Co. analysts warned.

The Group of Seven nations are hammering out a complicated mechanism to cap the price fetched by Russian oil in a bid to tighten the screws on Vladimir Putin’s war machine in Ukraine. But given Moscow’s robust fiscal position, the nation can afford to slash daily crude production by 5 million barrels without excessively damaging the economy, JPMorgan analysts including Natasha Kaneva wrote in a note to clients.

For much of the rest of the world, however, the results could be disastrous. A 3 million-barrel cut to daily supplies would push benchmark London crude prices to $190, while the worst-case scenario of 5 million could mean “stratospheric” $380 crude, the analysts wrote.

“The most obvious and likely risk with a price cap is that Russia might choose not to participate and instead retaliate by reducing exports,” the analysts wrote. “It is likely that the government could retaliate by cutting output as a way to inflict pain on the West. The tightness of the global oil market is on Russia’s side.”

Change in Boardroom

SERBA DINAMIK HOLDINGS BERHAD

Date of change 09 Jun 2022
Name TAN SRI MOHD SHARIFF BIN OMAR
Age 74
Gender Male
Nationality Malaysia
Designation Independent Director
Directorate Independent and Non Executive
Type of change Appointment
Qualifications

No
Qualifications
Major/Field of Study
Institute/University
Additional Information
1
Degree
Bachelor’s Degree in Economics
majoring in Rural Development
University Malaya

Working experience and occupation Tan Sri Mohd Shariff Bin Omar began his career in civil service in 1972 as the Assistant District Officer of Pekan, Pahang and continued to serve the State of Perak and Penang until 1982. His political career started when he won the State Seat of Sungai Dua in the 1982 General Election. He then served as a member of the Penang State Legislative EXCO from 1982 until 1990. He was subsequently appointed as the Parlimentary Secretary for the Ministry of Agriculture in 1990 until 1995. Between 1995 and 1999, he was appointed as Deputy Chief Minister of Penang. He returned as a Member of Parliament for another 2 terms from 1999 until 2008 and during that period, he was appointed as Deputy Minister of Agriculture and Agro-Based Industry.
Directorships in public companies and listed issuers (if any) Versatile Creative Berhad
Family relationship with any director and/or major shareholder of the listed issuer Nil
Any conflict of interests that he/she has with the listed issuer Nil
Details of any interest in the securities of the listed issuer or its subsidiaries Nil

We refer to the Company’s announcements dated 29 April 2022 and 18 May 2022 (“Announcements”). Unless otherwise stated, the definitions and terms used herein shall have the same meaning as defined in those Announcements.



The Board of Directors of the Company wishes to announce that the Company and the Syndicated Lenders entered into a consent order to stay the Petitions and the Interim Liquidator Applications pending the disposal and due compliance of the Company’s application to convene a meeting of its creditors (described in the Company’s announcement dated 18 May 2022) with costs awarded to the Syndicated Lenders. The Company has withdrawn the Application to Cross- Examine with no order as to costs.



The Court has fixed the next case management on 10 January 2023 pending disposal and due compliance of the scheme application.



The Company will make further announcement as and when there are material developments on the above matter.



This announcement is dated 9 June 2022.

https://www.theedgemarkets.com/article/serba-dinamiks-creditors-agree-stay-appointment-interim-liquidator

KUALA LUMPUR (June 8): Serba Dinamik Holdings Bhd's creditors have agreed to stay their applications for winding-up proceedings and the appointment of an interim liquidator on the condition that the beleaguered oil and gas group complies with payment timeline and contract order.

Lawyers for both sides informed Justice Nadzarin Wok Nordin of the arrangement during case management at the High Court on Wednesday (June 8).

The creditors who are petitioners in the winding-up application were represented by lawyers Datin Jeyanthini Kannaperan and Benjamin Dawson. Also in attendance were Datuk John Clark Sumugod and Karen Tan.

Mak Lin Kum appeared for Serba Dinamik and its subsidiaries — SD Controls Sdn Bhd, Serba Dinamik Development Sdn Bhd, Serba Dinamik Group Bhd (SDGB), and Serba Dinamik Sdn Bhd (SDSB).

Sources linked to the case told theedgemarkets.com that the petitioners decided to stay the applications for the appointment of an interim liquidator on the condition that Serba Dinamik's four units comply with the payment and conditions in the contract order under Section 366 of the Companies Act.

"The financial institutions negotiated for safeguards like the appointment of monitoring accountants as well as independent financial advisers to oversee Serba Dinamik," they said.

The sources also said that if the firms do not comply with the conditions, the petitioners will proceed with winding-up proceedings.

"If they don't comply then the petitioners will go back to the winding-up court," a source said.

It's good that the identified asset for sale is not related to O&G, thus it wont affect their revenue and profit.

Chakravarthy Technologies (P) Ltd - RM145,082,436.675
Bharath Technologies - RM75,000,000.00

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3265725

OTHERS 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

So many so called “expert” showing up :)

Best part yet to come....

https://www.theedgemarkets.com/article/serba-dinamik-carlsberg-mq-technology-cocoaland-fn-skp-resources-tnb-mahb-supermax-boustead

KUALA LUMPUR (June 2): Here is a brief look at some corporate announcements and news flow on Thursday (June 2) involving Serba Dinamik Holdings Bhd, Carlsberg Brewery Malaysia Bhd, MQ Technology Bhd, Cocoaland Holdings Bhd, Fraser & Neave Holdings Bhd, SKP Resources Bhd, Tenaga Nasional Bhd, Malaysia Airports Holdings Bhd, Supermax Corporation Bhd, Boustead Holdings Bhd, IOI Corporation Bhd, MR DIY Group (M) Bhd, UEM Sunrise Bhd, Key Alliance Group Bhd and Awanbiru Technology Bhd.

Six lenders are said to have arrived at a settlement with Serba Dinamik Holdings Bhd and four of its subsidiaries with regards to the scheme of arrangement and restraining order sought by the oil and gas-related companies. It is understood that the parties have agreed that the lenders would hold their applications for a winding-up petition against the Serba Dinamik companies, provided that the companies do not default on the payment of debts as agreed in the proposed scheme of arrangement.

*High 5* Mabel, preparing pop corn for spectacular fireworks show tomorrow. Cheers.

Very good news that the lenders had accepted the settlement. To the moon!

KUALA LUMPUR (June 2): Six lenders are said to have arrived at a settlement with Serba Dinamik Holdings Bhd and four of its subsidiaries with regards to the scheme of arrangement and restraining order sought by the oil and gas related companies.

It is understood that the parties have agreed that the lenders would hold their applications for a winding up petition against the Serba Dinamik companies, provided that the companies do not default on the payment of debts as agreed in the proposed scheme of arrangement.

The consent order was recorded at the High Court on Thursday (June 2) when the application for the scheme of arrangement came for hearing before Justice Atan Mustaffa Yussof Ahmad.

Serba Dinamik's lead counsel Mak Lin Kum proposed the settlement and it was agreed on by the lenders’ lawyers, Datin Jeyanthini Kannaperan and Benjamin Dawson.

31 May 2022, Friday (Focus Malaysia)
YOURS truly must confess that it is getting increasingly challenging to publish latest developments on Serba Dinamik Holdings Bhd. This is especially so when majority of the readership – to put it bluntly – “only expects you to whack the company”.

Well, Lord Buddha’s wisdom of pursuing the middle path – ie trying to pen a balanced piece or at least allow the global integrated oil & gas (O&G) or its promoters to run their so-called alternate views – does not seem to work anymore.

It seems that it’s one-way traffic all the way. Yours truly has been accused of running “paid advertorials” in the name of trying to be fair – even as yours truly has had his fair share of ‘whacking’ or ‘belittling’ (or whatever despicable word one can think of) the company.


On this note, yours truly feels the need to enlighten readers on the need to furnish two sides of the story no matter what pre-conceived notion readers might already have on Serba Dinamik. After all, the media has the responsibility to be fair to both sides of the divide regardless of the hostility readers expect the media to vent out on the company.

It is already public knowledge that Serba Dinamik’s financial health has fallen deeper into the chronic state. The company continued to bleed as it posted a third consecutive net loss of RM434.19 mil for its 3Q FY6/2022 ended March 31, 2022 – its largest to-date.

Prior to this, the company posted a net loss of RM290.33 mil for its 2Q FY6/2022 and a net loss of RM42.11 mil for its 1Q FY6/2022.

However, revenue for the quarter rose 16% quarter-on-quarter (qoq) to RM205.48 mil from RM177.14 mil in 2Q FY22, attributable to its operations and maintenance (O&M) segment, especially from Qatar, United Arab Emirates (UAE) and Malaysia.

Holy Moly!

https://www.theedgemarkets.com/article/serba-dinamik-received-oneyear-term-renewal-licence-petronas

KUALA LUMPUR (May 31): Petronas has renewed Serba Dinamik Sdn Bhd’s licence to continue offering supply and services to the national oil and gas company and its contractors.

In a statement Tuesday (May 31), Serba Dinamik said the renewal, effective May 30, 2022, is for a one-year term.

The licence stipulates that Serba Dinamik shall, within one year from the effective date, submit its audited financial statements for the financial year-end June 30, 2022, duly accompanied by the auditor’s unqualified opinion.

“Also, Serba Dinamik is required to submit financial guarantees as a prerequisite for all and every Serba Dinamik’s participation in tenders initiated and/or conducted within one year from the effective date.

“Petronas will engage with Serba Dinamik on the details of financial guarantee requirements, in due course,” it said.

Serba Dinamik’s founder and chief executive officer Datuk Dr Mohd Abdul Karim Abdullah said the renewal would enable the company to reposition itself strongly on its financial aspects.

“This signifies Petronas’ vote of confidence on us. Given the circumstances and legal issues we have had in the past year, this renewal is very meaningful.

“We can continue to participate in various bids and continue to honour our existing contracts,” he said in a statement Tuesday.

He also mentioned that the company will adhere to the terms imposed by Petronas and will duly submit the necessary financial statements and guarantees.

“We will fully utilise our investment into our assets, both in human resources and hi-end equipment, to be utilised to generate the sales and revenue for the company,” he added.

It is a mandatory requirement for Serba Dinamik to obtain a licence from Petronas to participate in the oil and gas industry in Malaysia.

“This licence facilitates Serba Dinamik to facilitate the provision of products and services to oil majors, operators as well as other oil and gas service providers in the industry,” it said.

Serba Dinamik said that together with its units, it has filed an application to seek leave from the court to convene a court-convened creditors meeting to address the defaults in interest payment.

Meanwhile, Serba Dinamik said it will continue its business and operations despite the default.

"The group is of the view that the application to seek leave to convene a creditors meeting is in the best interest of the group and is likely to generate a positive cash flow for the group," it said.

This is actually a known news that was announced last year, nothing surprising.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3218308

We refer to Bursa Malaysia Securities Berhad’s query letter dated 10 December 2021 and the news article by The Edge titled “Serba Dinamik subsidiary defaults on bond coupon payment” dated and published on 10 December 2021.

Please be informed that Serba Dinamik Holdings Berhad and its group of companies (“the Group”) have yet to receive any notice of default in respect of the outstanding USD222 million sukuk.

The Group shall update from time to time should there be any new development.

This announcement is dated 13 December 2021