KUALA LUMPUR (Feb 11): Several subsidiaries of Serba Dinamik Holdings Bhd have applied for a judicial management order to enable the group to restructure its finances.
In a filing with Bursa Malaysia, Serba Dinamik said its wholly-owned subsidiary Serba Dinamik Group Bhd, and indirect wholly-owned subsidiaries Serba Dinamik Sdn Bhd, Serba Dinamik Development Sdn Bhd and SD Controls Sdn Bhd have filed to be placed under judicial management.
It added that its subsidiaries filed their respective originating summons pursuant to Section 405 of the Companies Act 2016 — relating to power of court to make a judicial management order and appoint a judicial manager — in the High Court here.
Serba Dinamik, which has been charged by the Securities Commission (SC) together with four executives for submitting false statements, said this move comes on the back of “a series of events” that has affected its cash flow, due to the Covid-19 pandemic which has significantly slowed down the timing of payments by customers as well as the progress of the projects the group has undertaken.
“This had in turn led to a high inventory level and the slowing down of the conversion of inventory to cash and cash equivalent, resulting in collection to slow down,” it added.
Serba Dinamik noted that some of its assets are longer-term assets related to property development and infrastructure development, adding that such assets take time to be converted into cash.
Thus, the company said the purpose of the judicial management, if granted by the court, is to, among others:
“The board of directors of the company is of the view that the judicial management proceedings are in the best interest of the group,” it added.
Serba Dinamik noted that it will make further announcements regarding the aforementioned matter when there are material developments.
Serba Dinamik’s shares have been suspended from trading since Oct 22 last year after it dismissed the stock exchange’s directive to release the fact-finding update (FFU) by EY Consulting Sdn Bhd on its financials.
Serba Dinamik has since been embroiled in a legal stand-off with Bursa, owing to the company's reluctance to disclose the FFU.
The counter last traded at 35 sen, giving it a market capitalisation of RM1.3 billion.