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 SERBADK 5279 pn17 SERBA DINAMIK HOLDINGS BERHAD lists two assets worth RM220m to be disposed as part of scheme of arrangement

KUALA LUMPUR (June 3): Serba Dinamik Holdings Bhd has listed two assets that it owns to be disposed as part of the scheme of arrangement, together with creditors involved in the RM1.2 billion syndicated term financing defaulted by the oil and gas group.

In a Bursa Malaysia filing on Friday (June 3), Serba Dinamik listed Chakravartjy Technologies (P) Ltd — which is jointly owned by Serba Dinamik Development Sdn Bhd (SD Dev) and Serba Dinamik Sdn Bhd (SDSB) — and Bharath Technologies, as assets that will be disposed as part of the Scheme.

The group expects proceeds from the sale of Chakravarthy and Bharat Technologies to fetch an aggregate RM220.08 million, with RM145.08 million expected to come from the sale of Chakravarthy alone.

Under the proposed SoA, licensed liquidator Victor Saw Seng Kee is to be the court-appointed Independent Financial Advisor (IFA).

Pursuant to the proposed scheme, Serba Dinamik is to disclose the full details of the sale of the abovementioned assets. Additionally, Serba Dinamik will have to come up with a list containing assets which are identified for further sales and full details of those sales to be disclosed to the IFA as well.

Serba Dinamik added that the High Court has fixed case management on June 7 for the hearing of SDSB and SD Controls Sdn Bhd’s (SDCSB) applications for the scheme. It was previously reported that the parties are set to finalise their proposal on June 7.

To recap, on May 18, four subsidiaries of Serba Dinamik applied for a restraining order and a leave to convene a creditors' meeting — a move seen as to revive the troubled oil and gas group which is facing a winding up petition from its creditors.

In a bourse filing on May 18, Serba Dinamik said its subsidiaries, namely Serba Dinamik Group Bhd (SDGB), SDSB, SD Dev and SDCSB, had filed an application for the two purposes on May 13.

SDGB and SDSB, together with the listed entity, were slapped with winding-up petitions from six financial institutions for failing to service its RM1.2 billion syndicated term financing. The lenders are HSBC Amanah Malaysia Bhd, Ambank Islamic Bhd, Bank Islam Malaysia Bhd, MIDF Amanah Investment Bank Bhd, Standard Chartered Saadiq Bhd and United Overseas Bank (Malaysia) Bhd.

A similar application for leave was also filed by Serba Dinamik’s shareholder Datuk Abdul Kadier Sahib, who owns a 16.33% stake in the group.

Serba Dinamik said it is seeking creditors’ approval for a scheme of arrangement to restructure the group’s debt obligations, which proposes “a 100% return to the company’s creditors”.

The group said it has identified “some assets for immediate sale” to generate the cash flows required to meet the group’s liabilities.

On Thursday (June 2), the six lenders had arrived at a settlement with Serba Dinamik and four of its subsidiaries with regards to the scheme of arrangement and restraining order.

It is understood that the parties have agreed that the lenders would hold their applications for winding up petitions against Serba Dinamik companies, provided the companies do not default on the payment of debts as agreed in the proposed scheme of arrangement.

Serba Dinamik shares ended one sen or 9.52% higher at 11.5 sen on Friday, giving the group a market capitalisation of RM429 million.


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