Jepak Holdings Seeks Winding Up Protection Over Sarawak Solar Hybrid Project

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Jepak Holdings Sdn Bhd has filed a legal action for protection against being wound up in relation to the controversial RM1.32 billion solar hybrid project for 369 rural schools in Sarawak
Through legal firm Messrs DZ Shim, the company filed the originating summons (OS) at the Kuala Lumpur High Court Registry on Jan 16
Jepak Holdings itself is part of the ongoing corruption trial of former prime minister Najib Abdul Razak’s wife Rosmah Mansor over alleged misappropriation of funds linked to the project
On Nov 11 last year, it was reported that Jepak Holdings filed a separate RM7.83 billion suit against the Education Ministry (MOE) at a High Court In Sarawak, over the ministry’s alleged attempt to wrongful termination of the project
According to a copy of the OS sighted by Malaysiakini today, Jepak Holdings is applying to be placed under judicial management per Section 405 of the Companies Act 2016
Section 405 states that a High Court may grant such an application if it is satisfied that the company is unable to pay its debts but at the same time the said company’s survival needs to be ensured for a more advantageous realisation of the company’s assets rather than through winding up
According to the cause papers, Jepak Holdings claimed that various legal claims were made against the company following the ministry refusing to make payment for the project in Oct 2018
The company said that in that month, it was informed by the ministry that a task force was established to ascertain the authenticity of signatures by school principals in relation to the project
“Various legal claims were commenced against the applicant (Jepak Holdings) as a result of the non-payment by the MOE. At present, these include garnishee proceedings and a winding-up petition by its previous sub-contractors. At present, the applicant is unable to pay its debts,” Jepak Holdings said
The company claimed that following Oct 2018, it tried to meet the ministry to try to resolve the issue but the ministry refused to meet the company
Jepak Holdings claimed that notwithstanding the works done, without calling any meetings whatsoever, the ministry issued a termination notice on Oct 2, last year over allegation that the company had failed to execute the works in accordance with the project’s contract
“The large majority of the applicant’s assets are receivables from MOE. In the event the applicant manages to recover even a portion of the amount claimed, its creditors can recover a majority of their debts or even in full
“In view thereof, there is a reasonable probability of rehabilitating the applicant or preserving all or a part of its business as a going concern, whereby the interests of the creditors would be better served than by resorting to a winding up,” Jepak Holdings said
According to the online cause list at ecourtservices.kehakiman.gov.my, the matter is listed for hearing of two intervener applications before Kuala Lumpur High Court judicial commissioner Nadzarin Wok Nordin at 3pm this afternoon
The applications are by creditors Mastijaya Sdn Bhd and TNB Repair and Maintenance Sdn Bhd respectively, whereby both seek to intervene in order to oppose Jepak Holdings’ main legal action
Meanwhile, following the hearing of the intervener applications before the High Court this afternoon, justice Nadzarin allowed TNB Repair and Maintenance Sdn Bhd to intervene in the legal action, while the judge set March 24 to deliver his decision on whether to allow Mastijaya to intervene. - Mkini

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