Judicial commissioner Raja Rozela Raja Toran ordered Systematic Aviation Services Sdn Bhd (SAS) to be wound up in accordance with Section 465 (1)(e) & (h) of the Companies Act 216.

The sections outline grounds for a company’s winding up if it is unable to settle its debt or when the court deems it just and equitable to do so.

Australian-based Asia Pacific Aerospace Pty Ltd filed the petition last September over an undisclosed amount owed by SAS.

The court said a receiving officer will be appointed as the liquidator and the petitioner is allowed to be paid a winding-up cost of RM5,000 from the assets of SAS.

This came a day before the hearing for another winding-up petition filed by creditor Global Turbine Asia Sdn Bhd (GTA) against SAS at the Kuala Lumpur High Court.

A lawyer for GTA said they were caught by surprise to find the order made on Feb 19 when they did a winding-up search yesterday.

“We have no choice but to withdraw the petition and proceed to file a proof of debt with the official receiver,” the lawyer, who did not wish to be named, told FMT.

SAS, which owes millions in unpaid salaries, statutory contributions and debts, had in December pleaded for more time to resolve its financial obligations.

Its CEO, Ida Adora Ismail, had said the company was expecting a fresh injection of funds by Dec 31 that would be used to settle all critical debts.

However, she then said the deal was delayed by the end-of-year holidays but that talks were progressing steadily, with the company hoping to be in a position to make all payments by end-February.

Bankruptcy proceedings by the Employees Provident Fund for unremitted contributions are also looming over its directors.

FMT has reached out to SAS and Asia Pacific Aerospace for comment.