They talked about the IP rights still with SRB, the relevant paragraphs are reproduced as follows:
"Receivership locks Scomi out of Scomi Rail
Scomi entered into memorandums of deposit with Maybank on Sept 4, 2014, and Oct 30, 2015, whereby the group pledged 206.04 million shares it holds in SESB as security for the loan facilities granted to Scomi Rail.
Scomi Rail defaulted on the loan of RM201.9 million on Jan 25. After Scomi, as the holding company, also failed to pay a sum of RM113.96 million on Feb 8, Maybank applied for a winding-up order against the company, which was granted by the Shah Alam High Court on May 6.
While a settlement has been reached between Scomi and Maybank, the bank’s legal charges over Scomi Rail’s properties, including its intellectual properties, remain. This raises the question of what the future of Scomi’s transport solutions business without the technologies in Scomi Rail will be.
The receivership can be lifted, provided Scomi manages to convince Maybank that the restructuring plan is solid without selling the intellectual properties of Scomi Rail.
Whether it is successful remains to be seen as Datuk Adam Primus Abdullah, the receiver and manager for the properties, is tasked to recover the defaulted amount for Maybank as quickly as possible."
I raised doubt about the following paragraph in particular:
"While a settlement has been reached between Scomi and Maybank, the bank’s legal charges over Scomi Rail’s properties, including its intellectual properties, remain. This raises the question of what the future of Scomi’s transport solutions business without the technologies in Scomi Rail will be."
Where SRB is the owner of IPs, the use of IP is SRB's business which will go on anyway. Until the day the Receiver intends to sell off the IPs, it must be done by way of open tender too. That will mean SGB too can bid for the IPs. Even the IPs are sold to 3rd party despite the practical difficulties if not impossible as having been admitted in the same report too, the value of IPs is to make profit by using them to do business. In short, that does not justify the statement of possible future of Scomi's transport solutions business without the technologies in SRB. The Writer was making presumption that the IPs in SRB will be sold to 3rd party who will refuse in total to allow Scomi to use them at all, which is quite impossible.
I think the report creates unnecessary worry towards the IPs issues with SRB against SGB.
Honestly yesterday's announcement was nothing surprising as it was consequential to the Settlement Agreement dated 4 April 2019 ("SA"). To me the good implication is that: the conditions precedent of the SA are fulfilled without doubt and the RM181 million for the repair of 5 trains are in the pocket which will affect the coming quarter report, not taking into account the current RM122 million which is considered a new project in Scomi order book that we have not heard for years. The total is thus RM303 million. Again this RM303 million also did not take into account the RM25 million loan by SAL and Sammy Tse to settle the Maybank loan. The benefit is not only salvage Scomi from defaulting but to cut interest, on the basis that Sammy's advance of RM3 million is interest free and my believe that the interest imposed by SAL on the RM23 million will be lesser than Maybank's interest. In short Scomi is rescued. It all started since 4 April 2019. But people still hate the consolidation as we know its problems. I guess Scomi can only move steadily and positively after the consolidation takes place which is expected to be completed within 3 months I guess.
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Posted by limen12 > 2019-06-25 10:48 | Report Abuse
@Eric what do you mean? Can help explain what is inaccurate about the report? Thanks