KUALA LUMPUR (Oct 4): Dolomite Corp Bhd, which is involved in property development, construction and sand mining activities, has been ordered by the High Court here to wind up due to its failure to repay US$38.19 million (RM177.38 million) of debt. It is also to appoint Datuk Adam Primus as its liquidator.

This follows a lawsuit filed by Maybank International Labuan Branch as far back as September 2020, which then saw the court giving Dolomite until Oct 4 to settle the outstanding amount as well as the costs awarded by the court due to Maybank, or be wound up. The outstanding amount is in relation to a term loan facility granted by Maybank to Dolomite Power-Shandong (HK) Ltd, a wholly owned subsidiary of Dolomite Technology (HK) Ltd which in turn is a wholly owned unit of Dolomite.

"The directors of Dolomite are currently seeking the necessary legal advice as to whether an appeal can be lodged against the winding-up order to the Court of Appeal and the possibility of seeking a stay of the winding-up order," said Dolomite in a Bursa Malaysia filing.

"Further announcement on the development of the above matter will be made to Bursa Securities in due course," it added.

Dolomite slipped into Practice Note 17 status in May last year after its external auditor Baker Tilly Monteiro Heng PLT expressed a disclaimer of opinion on the group's financial statements for the year ended Dec 31, 2020 as it was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Dolomite's current liabilities exceeded its current assets by RM141.14 million as of Dec 31, 2020, with a capital deficiency of RM59.57 million.

Dolomite shares closed down 0.5 sen or 33.33% to one sen on Tuesday (Oct 4), bringing it a market capitalisation of RM4.43 million.