KUALA LUMPUR (Sept 26): Sarawak Cable Bhd has had its proposed scheme of arrangement rejected by creditors.
The power cable and wire maker held a court-convened creditor meeting on Tuesday, where creditors rejected two of the group’s ten debt settlement schemes.
However, it noted that as the proposed scheme of arrangement is inter-conditional, the whole scheme is deemed rejected as a whole.
“The company will be making further and additional announcements as and when there are future developments,” it added.
The two debt settlement schemes rejected were “Scheme B1” for its subsidiaries Universal Cable (M) Bhd, and “Scheme C1” for Leader Cable Industry Bhd.
The other subsidiaries involved in the scheme of arrangement are Universal Cable (Sarawak) Sdn Bhd and Aerial Power Lines Sdn Bhd.
Details of the scheme of the arrangement were not disclosed by Sarawak Cable in the filing.
The group referenced various prior filings relating to the scheme of arrangement, but these also did not contain details of debt settlement schemes.
Creditors involved in Sarawak Cable's scheme of arrangement include Hong Leong Bank Bhd, Bank Muamalat Malaysia Bhd, AmBank (M) Bhd, CIMB Bank Bhd, Malayan Banking Bhd, Bangkok Bank Bhd, OCBC Bank (Malaysia) Bhd and Universal Trustee (Malaysia) Bhd.
Earlier this month, the High Court of Sabah and Sarawak in Kuching had extended Sarawak Cable and its subsidiaries’ restraining order (RO) against creditors to Sept 29 to make way for the court-convened meeting concerning the scheme of arrangement.
It first obtained the RO and leave (permission) to hold a court-convened meeting with creditors a year ago.
As at end-May 2023, Sarawak Cable’s borrowings stood at RM400.37 million, while cash only stood at RM34.96 million.
Shares in Sarawak Cable closed one sen or 13.33% lower at 6.5 sen, giving the company a market capitalisation of RM24.31 million.