by RUPINDER SINGH
SERBA Dinamik Holdings Bhd’s future is at a crossroads as Bursa Malaysia Securities has denied the company’s request for a further extension to submit its regularisation plan.
The rejection has triggered a sequence of events that could lead to the delisting of the company’s securities.
In a filing to the stock exchange, Serba Dinamik announced that trading in its securities will be suspended from August 24, 2023.
If no appeal against the impending delisting is submitted to Bursa Securities by August 23, 2023, the company’s securities will be removed from the list on August 28, 2023.
Serba Dinamik’s troubles commenced earlier this year when it entered Practice Note 17 (PN17) status on January 6 due to a disclaimer of opinion on its audited financial statements for the 18-month period ending June 30, 2021.
This marked the start of a series of challenges for the oil and gas company.
Despite being initially granted a six-month extension, Serba Dinamik grappled to meet its regularisation plan deadlines.
An application for an additional extension, submitted on July 5, 2023, was rejected by Bursa Securities, heightening the likelihood of trading suspension and delisting.
The recent quarterly report revealed a daunting net loss of RM972.91 million for the third quarter ending March 31, 2023 (3Q23), marking seven consecutive quarters of losses.
The loss was predominantly attributed to a substantial impairment of trade receivables amounting to RM865.1 million, stemming from unfulfilled projects.
The company’s net loss for 3Q22 was RM434.19 million, with a corresponding loss per share increase from 11.7 sen to 26.1 sen.
Furthermore, quarterly revenue plummeted by 97%, dwindling to RM6.18 million from RM205.48 million in the same period the previous year, primarily due to reduced contributions across all business divisions.
The company’s shares were suspended in December 2022 following its failure to submit an annual report for the fiscal year ending June 30, 2022.
In response to its challenges, Serba Dinamik enlisted Baker Tilly Insolvency PLT as a restructuring consultant and engaged Dennis Nik & Wong as restructuring lawyers.
The company also indicated its ongoing pursuit of a principal advisor for its regularisation plan, still under development.
Earlier this month, the liquidator for Serba Dinamik and its subsidiary companies called for a meeting of creditors to discuss the ongoing liquidation proceedings and explore the potential appointment of a Committee of Inspection in accordance with the Companies Act 2016.
The winding-up petition against Serba Dinamik and its subsidiaries, filed by several banks due to non-payment of loans totaling RM1.7 billion, highlights the gravity of the company’s financial situation and its implications for stakeholders.