KUALA LUMPUR (Oct 31): Serba Dinamik Holdings Bhd said it has defaulted in its payment due on Oct 6 with regards to a US$43 million invoice financing and commodity murabaha facility.
The amount in default was US$5.87 million, the group said in a filing with Bursa Malaysia on Monday (Oct 31).
The group said it was unable to meet its obligation to pay the due installment in a timely manner, given cash flow constraints following unfavourable conditions in the operations of the group.
Serba Dinamik and its units Serba Dinamik Group Bhd (SDGB), Serba Dinamik Sdn Bhd (SDSB), Serba Dinamik Development Sdn Bhd (SDDSB) and SD Controls Sdn Bhd (SDCSB) had on May 13 filed an application to seek leave from the court to convene a court-convened creditors meeting.
The scheme is also taking steps to address the creditors of Serba Dinamik International Ltd (SDIL) as well.
“Standard Chartered Bank may be at liberty to issue a legal demand against SDIL,” it said.
On Aug 23, Victor Saw Seng Kee of PricewaterhouseCoopers Advisory Services Sdn Bhd was appointed as interim liquidator of Serba Dinamik, SDGB, SDSB and SDIL.
Subsequently, Serba Dinamik said the group would endeavour to continue its businesses and operations despite the default.
“Serba Dinamik is of the view that the group of companies’ application to seek leave to convene a creditors meeting are in the best interest of the the group and is likely to generate a positive cash flow for the group,” it said.
The group added that the default in payment will give rise to several other potential events of default of the indebtedness under the company by virtue of the cross-default provision under the respective financing agreements.
Serba Dinamik’s share price closed unchanged at two sen on Monday, bringing the group a market capitalisation of RM74.5 million.