Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 21): The High Court has today dismissed Scomi Group Bhd’s application to block Tan Sri Wan Azmi Wan Hamzah and Datuk Mohd Zakhir Siddiqy from taking over a 37.2% stake in Scomi Energy Services Bhd following the default by Scomi Group on a loan of RM42 million from the duo last month.

This means Wan Azmi and Mohd Zakhir's private vehicle, Gelombang Global Sdn Bhd (GGSB), can proceed with transferring the stakes, which were pledged to them in return for the loan to Scomi Group. This will see them emerge as new substantial shareholders in Scomi Energy.

This comes after two weeks of legal tussle over the ownership of the stake, which the two lenders have claimed following Scomi Group's default.

The dismissal of Scomi Group's injunction applications were made by Judicial Commissioner Ong Chee Kwan in closed chambers today, in the presence of the lawyers representing all three parties.

At the time of writing, it is unclear whether Scomi Group will appeal against the decision. Based on its stock exchange filing this afternoon, the group is seeking legal advice on its next course of action.

Scomi shares were halted from trading from 2.57pm to 3.57pm today. Prior to the halt, Scomi Group shares were trading half a sen lower at 3.5 sen, which gave it a market capitalisation of RM38.29 million.

The court's decision today presents another hurdle to Scomi Group's restructuring plan, which has not progressed as quickly despite the financial aid from Wan Azmi and Mohd Zakhir to help the financially ailing company to ease its tight cash flow.

The loan from the duo was extended to Scomi Group two months after it announced the restructuring plan, which is expected to raise up to RM214 million via a rights issue to recapitalise the company. Wan Azmi and GGSB also both made an irrevocable undertaking to subscribe to the proposed rights issue.

But Scomi Group subsequently defaulted on the loan repayment. Consequently, the lenders wanted to take over the shares pledged — 18.6% each in Scomi Energy — to cover their losses.

However, Scomi Group managed to obtain an injunction last week to stop the share transfers. It had also applied for restraining orders against the two parties to stop them from terminating the irrevocable undertaking in relation to the proposed rights issue. The injunction came one day before the duo wanted to transfer the shares.

While GGSB had managed to transfer the shares and announced as such to Bursa Malaysia via a Scomi Energy filing on Monday, it subsequently retracted its announcement after Scomi Group said it had been granted an ad-interim injunction by the court that restrained GGSB from dealing with the stake.

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