22 February 2022, focusmalaysia.my, KUALA LUMPUR: SERBA Dinamik Holdings Bhd as a group could be owing financial institutions comprising local and foreign banks a whopping sum of RM3 bil to RM4 bil.
This was revealed by HSBC Amanah Malaysia Bhd and HSBC Bank Malaysia Bhd counsels Benjamin Dawson and Datin Jeyanthini Kannaperan as they contended that the appointment of an interim judicial manager (IJM) for only two companies belonging to the group’s wholly-owned Serba Dinamik Group Bhd is inadequate.
Serba Dinamik’s counsel Mak Lin Kum had initially wanted the Kuala Lumpur High Court to appoint an IJM for SD Controls Sdn Bhd and Serba Dinamik Development Sdn Bhd – and to later decide on the appointment of a judicial manager (JM) for another two companies, namely Serba Dinamik Group itself and Serba Dinamik Sdn Bhd.
“Hence, we say that the appointment of an IJM should not be done hastily for SD Controls and Serba Dinamik Development while leaving the rest as the magnitude of the lending and its impact is colossal,” Dawson was cited by theedgemalaysia.com as saying. “The appointment of the IJM should be viewed for the whole four companies in question.”
This was agreed by Jeyanthini who argued that the creditors should have a say as to who the IJM or JM should be and that it should not be left to the four companies to determine.
“A common framework is necessary as it would affect the entire group. We suggest a structured approach of the JM is necessary,” noted Jeyanthini who also appeared for MIDF Amanah Investment Bank, Ambank Islamic Bhd, Bank Islam Bhd, UOB and Standard Chartered Saadiq Bhd.
“While they are asking that IJM be appointed for SD Controls and Serba Dinamik Development in the two actions, the remaining two originating summons (involving Serba Dinamik Group) and Serba Dinamik Sdn Bhd cannot be dealt with separately. The creditors should have a say in the appointment of the IJM.”
Following the argument put forth by Dawson and Jeyanthini, the Kuala Lumpur High Court yesterday (Feb 21) ruled that the applications for the appointment of an IJM for Serba Dinamik Group and its three subsidiaries – SD Controls, Serba Dinamik Development and Serba Dinamik Sdn Bhd – should be heard together and not separately.
According to theedgemalaysia.com, the decision was made by Judicial Commissioner Nadzarin Wok Nordin who had earlier allowed several financial institutions to be intervener in the four companies’ applications to appoint either a JM or IJM to help restructure the financial health of the companies.
Nadzarin has fixed March 2 to hear the application to appoint an IJM for all four companies and directed that all affidavits and submissions be filed beforehand.
On Feb 11, several subsidiaries of Serba Dinamik Holdings applied for a judicial management order to enable the group to restructure its finances following “a series of events” (including COVID-19) that has affected its cash flow, thus significantly slowed down the timing of payments by customers as well as the progress of projects that the group has undertaken.
Serba Dinamik was last transacted at 35 sen at the close of the mid-day trading on Oct 22 prior to the trading suspension of its shares/warrants, hence giving the company a market capitalisation of RM1.3 bil.