KUALA LUMPUR (Feb 25): Datuk Seri Mahmud Abu Bekir Taib has filed an application to intervene in Messrs Krish Maniam & Co's successful application to place Sarawak Cable Bhd (KL:SCABLE) under interim judicial management (IJM).
Abu Bekir, a director and shareholder of Sarawak Cable, in an affidavit filed last week through Messrs Dinesh Ratnaraj Partnership (previously known as Messrs Richard Talalla & Harun) sighted by The Edge, claimed that Messrs Krish Maniam continues to harbour “delusional hope” that Sarawak Cable’s rehabilitation can be done through United Kingdom-based firm Serendib Capital Ltd.
“It is clear that the entire exercise to place Sarawak Cable in judicial management is nothing but a waste of time and resources,” said the son of the former Sarawak governor, the late Tun Abdul Taib Mahmud.
“I agree with AmBank Bhd and Hong Leong Islamic Bank that a liquidation scenario should be the desired and best outcome,” Abu Bekir added.
He agreed that Serendib Capital had been introduced to Sarawak Cable by Messrs Krish Maniam as a party interested in resuscitating Sarawak Cable, but expressed doubt that that could happen.
Abu Bekir said Messrs Krish Maniam is well aware of Sarawak Cable’s and its group of companies’ financial predicament.
As a director of Sarawak Cable, Abu Bekir said he has a legal duty to ensure the best interests of the creditors are served due to Sarawak Cable’s insolvent position.
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.
The company was placed under IJM in July last year, after the High Court allowed Messrs Krish Maniam’s application, which is claiming unpaid legal fees from the company, to have the company placed under IJM as the law firm filed an originating summons (OS).
The law firm claimed that it had acted for Sarawak Cable in several ongoing matters, including its scheme of arrangement in finding Serendib Capital as a white knight.
However, sometime in May, Sarawak Cable terminated the MOA with Serendib Capital and replaced Messrs Krish Maniam, with the law firm billing six invoices totalling RM345,908 for outstanding legal fees which had not been paid to date.
Case management has been fixed before a High Court senior assistant registrar over Abu Bekir’s application to intervene on March 7.