Serba Dinamik, subsidiaries identify assets for sale to settle liabilities

 

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 the scheme are in the best interest of the Serba Dinamik Group and its creditors as the proposed scheme of arrangement proposes a 100 percent return to the company's creditors.

The applications for the scheme have 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 events 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 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 collections 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 leave for a court-convened creditors' meeting and for a restraining order to be granted over the Serba Dinamik subsidiaries.

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's share price declined half-a-sen to 16 sen with 215.78 million shares transacted.

- Bernama