The defaults comprise a RM400.77 million club financing arrangement provided by MBSB Bank Bhd and Bank Kerjasama Rakyat Malaysia Bhd (club banks), RM34.41 million tawarruq term financing-i by Affin Islamic Bank Bhd and RM228,568 bai’Inah facility by Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank).

In three filings with Bursa Malaysia today, Serba Dinamik stated that the default in interest payment for the facility with SME Bank has been fully settled as of June 1, 2023.

Regarding the interest default with club banks and Affin Bank, SDGB’s liquidator team has reached out to the banks to discuss an outcome that serves the best interests of everyone.

The group said that in the event of a default in payment, Affin Bank has a first-party legal charge over one of its buildings, the Menara Serba Dinamik in Shah Alam, Selangor.

“The club banks have a first-party legal charge over several parcels of land owned by SDGB in Kota Tinggi, Johor.

SDGB stated that if the payment default occurs, it would trigger various other potential events of default related to the company’s indebtedness, due to the cross-default provision in the corresponding financing agreement.

On Jan 1, 2023, Victor Saw of PricewaterhouseCoopers Advisory Services Sdn Bhd was appointed as the liquidator of Serba Dinamik, SDGB, Serba Dinamik Sdn Bhd and Serba Dinamik International Ltd.