KUALA LUMPUR (Nov 20): Bursa Malaysia has filed an application to the High Court seeking clarifications on the legal implications of the court's appointment of an interim judicial manager for Sarawak Cable Bhd (KL:SCABLE), whose shares it suspended from trading on Tuesday but has now allowed to resume on Thursday.

In a bourse filing on Monday, Sarawak Cable announced it had received a letter from Cheang and Ariff, the solicitors acting on behalf of Bursa, on the bourse operator's application.

Bursa, it said, is seeking an order from the High Court to declare that the appointment of the interim judicial manager does not affect the rights of shareholders who have fully paid for their shares, and that the appointment does not prohibit them from trading in their shares on the stock exchange.

Bursa is also seeking a declaration from the court that during this period, such shareholders can continue to trade in their shares without having to obtain permission from the court or be subject to conditions imposed by the court if they do so.

Hence, it is seeking an order from the court that Section 411(4)(e) of the Companies Act 2016 — which stipulates that, during judicial management, no steps can be taken to transfer any share of the company or alter the status of any member of the company except with permission from the court — will not be triggered following the appointment of the interim judicial manager.

In response, Sarawak Cable's interim judicial manager said it had appointed Messrs S Ravenesan to represent the company on the matter, and that the case had been fixed for hearing on Jan 24 next year.

Sarawak Cable was placed under the interim judicial manager following an application filed by law firm Messrs Krish Maniam & Co, which is claiming unpaid legal fees from the company, to have the company placed under judicial management. The hearing for the law firm's application, which had been fixed for Nov 20, had been postponed to Jan 22 next year.

Sarawak Cable fell into Practice Note 17 status in September 2022 after its external auditor questioned its viability as a going concern. The company appointed Malacca Securities Sdn Bhd as its principal adviser to prepare a plan to regularise its condition, but has yet to submit the plan to Bursa.

Instead, the company had sought three extensions from Bursa to submit the plan, with the latest extension given till March 31 next year.

Sarawak Cable's shares were suspended from trading on Nov 18 following the appointment of the interim judicial manager, with Bursa citing Section 411(4)(e) of the Companies Act 2016. At the time Bursa said the trading suspension would only be lifted upon the expiry of the High Court's judicial management order.

On Wednesday, Sarawak Cable announced that the trading of its shares will resume on Thursday, and that the restriction on the transfer of its shares through the Central Depository System had been lifted.

Sarawak Cable shares were last traded at nine sen apiece, giving the company a market capitalisation of RM35.91 million.