With total debt of nearly RM5b, High Court allows Serba Dinamik and three subsidiaries to be wound up

January 10, 2023

With total debt of nearly RM5b, High Court allows Serba Dinamik and three subsidiaries to be wound up

KUALA LUMPUR, Jan 10 — The High Court has allowed the winding-up petition filed by six financial institutions against Serba Dinamik Holdings Bhd and its three companies: Serba Dinamik International Ltd (SDIL), Serba Dinamik Sdn Bhd and Serba Dinamik Group Bhd.

The Edge reported that judicial commissioner Ahmad Murad Abdul Aziz allowed the petition filed by Standard Chartered Saadiq Bhd, HSBC Amanah Malaysia Bhd, Ambank Islamic Bhd, MIDF Amanah Investment Bank Bhd, United Overseas Bank (Malaysia) Bhd and Bank Islam Malaysia Bhd.

The four aforementioned companies are said to have a total debt of close to RM5 billion, the report added.

All four entities will now be placed under liquidator Victor Saw Seng Kee from PriceWaterhouseCoopers (PWC) following the winding-up petition.

Winding up is a process in which the existence of a company is brought to an end, where assets of a company are collected and realised by a legally appointed liquidator.

The proceeds collected will then be used to discharge the company’s debt and liabilities.

Earlier, the court had heard an application by the companies to postpone today’s hearing of the winding-up proceedings by lawyer Ranjit Singh, who is representing EFIRE Capital Holdings Ltd based in Abu Dhabi.

It is understood that the company is a joint venture between SDIL and its Abu Dhabi counterpart LIWA Investment Holding.

Datin Jeyanthini Kannaperan representing the petitioners, however objected to the postponement.

Serba Dinamik’s shares on Bursa Malaysia were suspended last week as the company failed to submit its annual report for the financial year ended June 2022.

The company also fell into the Practice Note 17 (PN17) category, issued by Bursa Malaysia in relation to listed issuers that are in financial distress.