‘Withdraw the application for judicial management to want to run away?’
Four subsidiaries of Serba Dinamik Holdings Bhd have withdrawn their applications to be placed under judicial management in an effort to restructure the company's finances.
Through the law firm of Messrs. Syed Ibrahim & Co, on March 23, Serba Dinamik Group Bhd, Serba Dinamik Sdn Bhd, SD Control Sdn Bhd and Serba Dinamik Development Sdn Bhd submitted the withdrawal application.
The firm explained that they had received orders to withdraw the originating summons for 4 cases as a result of creditors opposing the company from being placed under judicial management.
Following the withdrawal bid, judicial commissioner Nadzarin Wok Nordin, who presided over the proceedings on March 24, quashed the judicial management application and ordered the 4 companies to pay total costs of RM300,000 to the financial institutions and creditors who opposed them.
The Serba Dinamik cited strong opposition from creditors and financial institutions that lent the 4 subsidiaries money as the reason behind the withdrawal application.
In addition, Serba Dinamik’s appointed lawyer, Mak Lin Kum told the court that his client company was considering an arrangement scheme and would inform creditors about the plan.
Earlier this month, Nadzarin had rejected the applications of the 4 companies to be placed under intrim judicial management following strong opposition from financial institutions that were creditors in the application.
Among the creditors present during the proceedings were HSBC Bank Malaysia Bhd, HSBC Amanah, MBSB Bank Bhd, Bank Rakyat, Hong Leong Islamic Bank, Oriententuek Engineering & Trading Sdn Bhd, Perisind Samudra Sdn Bhd, Izin Budi Sdn Bhd, Yicai Construction Sdn Bhd and Bank Pembangunan Malaysia Bhd.
There are also 6 other financial institutions that are syndicated lenders, namely MIDF Amanah Investment Bank Bhd, AmBank Islamic Bhd, Bank Islam Malaysia Bhd, UOB, HSBC Amanah and Standard Chartered Saadiq Bhd.
Meanwhile, during the preliminary proceedings last month, the court was told that the 4 companies had debts of RM6.45 billion and assets worth RM7 billion.
