The three subsidiaries being wound up along with parent company SDHB were Serba Dinamik Sdn Bhd, Serba Dinamik International Ltd and Serba Dinamik Group Bhd.

“The High Court dismissed the company’s stay application with costs,” SDHB said in a Bursa Malaysia filing today.

It added the board is seeking legal advice on the decision and will make further announcement as and when there are material developments on the matter.

Judge Ahmad Murad Abdul Aziz ruled today that SDHB and its subsidiaries failed to prove there are special circumstances for the court to grant the stay.

He said his full grounds would be ready within two weeks should parties decide to take up the matter.

Earlier on Feb 10, Ahmad had granted an interim stay of the winding up of the four companies.

The winding-up application made by the financiers against them was granted by the court on Jan 10, 2023.

The applications for winding up were made by Standard Chartered Saadiq Bhd, HSBC Amanah Malaysia Bhd, AmBank Islamic Bhd, MIDF Amanah Investment Bank Bhd, United Overseas Bank (Malaysia) Bhd and Bank Islam Malaysia Bhd over the non-payment of loans amounting to RM1.7 billion out of a total of RM5 billion owed.

They said the RM5 billion included the US$500 million (RM2.13 billion) sukuk, in which it had defaulted.

SDHB had appealed against the court’s Jan 10 decision to dismiss its application to adjourn the hearing of the winding up petition, as well as the court’s winding up order issued against the financially distressed PN17 company.

In its filing today, the group said its liquidator Victor Saw from PricewaterhouseCoopers Advisory Sdn Bhd had agreed to several “right-sizing initiatives” that are in line with its regularisation efforts pending its legal appeals.

“These initiatives will enable the companies to contain cash outflow as well as improve cash inflow to sustain the operations,” it added.