KUALA LUMPUR (Sept 7): Sarawak Cable Bhd is seeking another extension of time to hold a court-convened creditors' meeting to facilitate a scheme of arrangement and compromise with the creditors.
This marks the fifth time the Practice Note 17 (PN17) company has applied for a time extension from the High Court. The initial deadline was Sept 29, 2022 and the latest deadline granted by the court is Sept 9 this year.
In a filing with Bursa Malaysia on Thursday, the power cable and wire producer said the creditors' meeting has now been scheduled for Sept 26, but since this date falls after the latest deadline of Sept 9, the company is seeking another extension until Sept 26.
In September last year, Sarawak Cable and six of its subsidiaries applied to the High Court for leave to convene a meeting with their creditors and for a restraining order to restrain legal suits, winding up petitions and enforcement proceedings against the group and subsidiaries.
This was after the company’s external auditor, Ernst and Young PLT expressed a disclaimer of opinion on the company’s audited financial statements for the 17-month period ended May 31, 2022, triggering the criteria of a PN17 company for the second time.
The six subsidiaries are Universal Cable (M) Bhd, Leader Cable Industry Bhd, Universal Cable (Sarawak) Sdn Bhd, Sarwaja Timur Sdn Bhd, Trenergy Infrastructure Sdn Bhd and Aerial Power Lines Sdn Bhd.
Sarawak Cable had previously triggered the PN17 criteria in December 2021 as its shareholders’ equity on a consolidated basis was 50% or less than its share capital, based on its financial results for the quarter ended Nov 30, 2021.
Shares of Sarawak Cable closed half sen or 6.67% higher at 8 sen on Thursday, giving the company a market capitalisation of RM29.92 million.