KUALA LUMPUR (Oct 10): Trading in Sarawak Cable Bhd’s (KL:SCABLE) shares will be suspended on Friday as the company faces a judicial management order, according to its bourse filing on Thursday.
The suspension, including the transfer of shares, will remain in effect until the hearing on Oct 15, 2024. Bursa Malaysia may lift the suspension if the judicial management order is not granted, the filing read.
“Otherwise, the trading suspension and transfer suspension will remain until the expiry of the judicial management order as may be granted by the Kuala Lumpur High Court,” Sarawak Cable added.
The trading and transfer suspension comes pursuant to Section 411(4)(e) of the Companies Act 2016 which states that no transfer of shares or alteration of member status is allowed during the period of a judicial management order, except with court approval.
On July 9, the High Court approved a request by law firm Messrs Krish Maniam & Co to appoint an interim judicial manager after filing an originating summons against Sarawak Cable.
This followed a dispute over the law firm’s termination from handling legal matters for the company’s subsidiaries, Universal Cable (M) Bhd and Leader Cable Industry Bhd.
Messrs Krish Maniam, which had previously aided Sarawak Cable in its scheme of arrangement and in securing a deal with Serendib Capital Ltd, claimed outstanding legal fees of RM345,908.
The firm also pointed to Sarawak Cable’s significant losses, as reflected in its February 2024 quarterly report, and raised concerns over the company’s current management.
Sarawak Cable fell into Practice Note 17 (PN17) status in September 2022 after its external auditor questioned its viability as a going concern. The group has since appointed Malacca Securities Sdn Bhd as its principal adviser for its regularisation plan.
Malacca Securities had on Sept 30 submitted an extension of time application for the Sarawak Cable to submit its regularisation plan to the relevant regulatory authorities, which is currently pending a decision from the regulator.