KUALA LUMPUR - Serba Dinamik Holdings Bhd and its subsidiaries have identified some assets for immediate sale to generate the cash flow required to meet the companies’ liabilities.
In a filing with Bursa Malaysia today, the company said it would require a court-convened meeting of its creditors to consider and if thought fit, to approve a scheme of arrangement to be proposed between the company and its creditors to restructure the debt obligations of the company and its subsidiaries.
"The board of directors of the company is of the view that the applications for scheme are in the best interest of the Serba Dinamik Group and its creditors as the proposed scheme of arrangement proposes a 100 per cent return to the company’s creditors.
The applications for the scheme has been fixed for hearing on May 19, 2022.
The company will make further announcements as and when there are material developments on the above matter.
The engineering services company said that since May this year it has been facing a series of event that has affected the cash flow of the Serba Dinamik Group due to the COVID-19 pandemic environment which has significantly slowed down the timing of payments by customers as well as the progress of the projects undertaken by the Serba Dinamik Group.
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 a collection to slow down, it said.
To recap, the engineering services company had on May 13, 2022 filed an application under Section 366 of the Companies Act 2016 to seek to leave to convene a court-convened creditors’ meeting and for a restraining order to be granted over the Serba Dinamik subsidiaries.
Datuk Abdul Kadier Sahib, being a member of the company, has similarly filed an application under Section 366 of the Companies Act 2016 to seek leave for the company to convene a court-convened meeting of its creditors collectively.
At the close of Bursa Malaysia trading today, Serba Dinamik share price declined half-a-sen to 16 sen with 215.78 million shares transacted. - Bernama