Serba Dinamik, subsidiaries to sell assets to settle liabilities

 

Serba Dinamik Holdings Bhd says a series of events has affected the company’s cash flow.

KUALA LUMPUR: Serba Dinamik Holdings Bhd and its subsidiaries have identified some assets for immediate sale to generate the cash flow required to meet their liabilities.

In a filing with Bursa Malaysia today, Serba Dinamik said it would require a court-convened meeting of its creditors to consider and 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% return to the company’s creditors.

The applications for the scheme have been fixed for hearing tomorrow.

The company will make further announcements when there are developments on the matter.

The engineering services company said that it had been facing a series of events that had affected cash flow due to the Covid-19 pandemic, which had significantly slowed down the timing of payments by customers as well as the progress of 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, it said.

The company had on May 13 filed an application under the Companies Act 2016 to seek leave for a court-convened creditors’ meeting and for a restraining order to be granted over Serba Dinamik subsidiaries.

Abdul Kadier Sahib, being a member of the company, had filed a similar application for a court-convened meeting of creditors collectively.

At the close of trading today, Serba Dinamik’s share price declined half a sen to 16 sen with 215.78 million shares transacted. - FMT