We Have 30 Days To Pay Says Serba Dinamik On Us 300mil Sukuk Default

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Serba Dinamik maintains that the coupon payment due was approximately US$7 million (RM29mil) and not US$9.45 million (RM39mil) as claimed by a financial daily report.KUALA LUMPUR: Serba Dinamik Holdings Bhd has clarified that it has a 30-day period from the non-payment due date to cure and pay the overdue coupon obligations before triggering any dissolution event.
Responding to an article titled “Serba Dinamik misses coupon payment for US$300m sukuk” published by a local financial daily yesterday, the oil and gas company denied that the amount due was as stated in the article, maintaining instead that the coupon payment due was approximately US$7 million (RM29mil) and not US$9.45 million (RM39mil).
The coupon payment for the three-year, US dollar-denominated sukuk was due on Nov 9.
Serba Dinamik said it had no intention to default on the coupon payment and is taking all necessary steps to remedy the matter within the stipulated timeline.

“Serba Dinamik has engaged and sought advice from our legal counsel, as well as written to a sukuk agent to notify the sukuk holders on the correct amount due.
“We wish to highlight that, under the terms of agreement, Serba Dinamik has a 30-day period from the non-payment due date to cure and pay the overdue coupon obligations before triggering any dissolution event,” it said.
The tranche of bonds will mature in six months on May 9, 2022.
Serba Dinamik gave an assurance that the group was committed to fulfilling the payment, subject to receipt from its customers.
It is also proactively engaging all stakeholders to provide timely updates and clarifications as and when required.
Separately, Serba Dinamik said it attended the hearing of an injunction application against Bursa Malaysia Securities Bhd yesterday.
“The High Court had fixed the hearing of the application for injunction in the proceeding against Ernst & Young Consulting Sdn Bhd (as described in the company’s announcement dated Nov 10) together with the proceeding herein,” it said in response to Bursa Malaysia’s query today.
The company applied orally for an adjournment of the hearing of the injunction application as it was served with a copy of affidavits in reply from Bursa Malaysia and EY Consulting on Nov 10 and 11, respectively.
The High Court allowed its oral application and fixed the hearing of the injunction application together with the originating summons (OS) on Dec 8. The company further applied for an ad-interim injunction to be granted pending the disposal of the injunction application.
Serba Dinamik had filed an OS at the Kuala Lumpur High Court against Bursa Malaysia on Nov 3 and against EY Consulting on Nov 5.
Shares of Serba Dinamik were last traded on Oct 22 at 35 sen, with a market capitalisation of RM1.3 billion. - FMT

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