KUALA LUMPUR (March 16): Serba Dinamik Holdings Bhd, which is in the midst of appealing the High Court's dismissal of its application for a permanent stay of a winding up petition from its creditors, said several right-sizing initiatives that are in line with its regularisation efforts have been agreed to by its liquidator Victor Saw Seng Kee from PricewaterhouseCoopers Advisory Sdn Bhd.
“These initiatives will enable the companies to contain cash outflow as well as improve cash inflow to sustain the operations,” the Practice Note 17 company said in a Bursa Malaysia filing on Thursday (March 16).
Saw is the court-appointed liquidator of the company. The announcement came after the High Court dismissed Serba Dinamik’s application for the permanent stay of the winding up petition earlier on the same day.
Apart from that, Serba Dinamik is appealing against an earlier decision by the High Court — delivered on Jan 10 — to dismiss its application to adjourn the hearing of the winding up petition, as well as the court's winding up order issued against the financially distressed oil and gas firm.
The petition for the winding up was made against Serba Dinamik and three of its subsidiaries — Serba Dinamik International Ltd, Serba Dinamik Sdn Bhd and Serba Dinamik Group Bhd — by six financial institutions.
The six are: 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 over the non-payment of debts totalling about RM5 billion. The RM5 billion included the US$500 million (RM2.13 billion) sukuk, on which Serba Dinamik had defaulted.
The company further said it is seeking legal advice on the decision granted.