KUALA LUMPUR (Aug 18): Leader Cable Industry Bhd (LCIB), a former unit of delisted Sarawak Cable Bhd, has exited liquidation after an investor acquired the business and shares of the cable manufacturer as part of a restructuring exercise.
The company exited liquidation on May 6 after the investor and its liquidators secured creditor support for a scheme of arrangement to recapitalise Leader Cable, Deloitte Malaysia said in a statement on Tuesday.
Deloitte Malaysia Strategy, Risk & Transactions partners Khoo Siew Kiat and Eddie Goh, who were appointed Leader Cable's liquidators by the High Court in May 2024, continued operating the business while securing an investor.
“The liquidators continued the business operations and secured an investor to acquire the business and shares of Leader Cable," Deloitte Malaysia said in the statement.
“The investor and liquidators obtained support from creditors for a scheme of arrangement to recapitalise Leader Cable, allowing the company to exit liquidation on May 6, 2026,” it added.
Leader Cable was placed under liquidation in May 2024 after the High Court granted a winding-up petition filed by OCBC Bank (Malaysia) Bhd against the company and another Sarawak Cable subsidiary, Universal Cable (M) Bhd.
OCBC had claimed that Sarawak Cable failed to secure creditor approval for a proposed scheme of arrangement involving Universal Cable and LCIB by the Sept 26, 2023 deadline.
The court subsequently appointed Khoo and Goh as joint liquidators of both Universal Cable and LCIB.
The dispute between Sarawak Cable and the liquidators later escalated, with Sarawak Cable saying in May 2025 that it intended to take legal action against the liquidators over alleged willful negligence and misconduct in the handling of LCIB’s assets.
Sarawak Cable has since been delisted from Bursa Malaysia after the exchange rejected the company’s appeal for an extension of time to submit its regularisation plan.
Before its delisting, Sarawak Cable’s largest shareholder was its chairman Datuk Seri Mahmud Abu Bekir Taib, the second child of the late former Sarawak governor Tun Abdul Taib Mahmud, with an 18.63% stake.
Notably, Abu Bekir had previously distanced himself from the proposed legal action against the liquidators, saying he was “neither aware of the decision to commence legal proceedings nor” supportive of it.
Sarawak Cable subsequently disputed his claim, saying the board had deliberated on the matter and that the decision was duly recorded.
In the statement on Tuesday, Deloitte Malaysia said the liquidators faced several challenges during the winding-up process, including maintaining customer and supplier support, staff morale and working capital, as well as a legal suit brought by Leader Cable’s holding company.
The suit was successfully defended by the liquidators and was struck out by the High Court on Nov 4, 2025, Deloitte Malaysia said, without providing further details.
Leader Cable’s turnaround
Leader Cable was founded by prominent corporate figure Tan Sri H'ng Bok San in 1976 and specialised in the manufacture and sale of telecommunications and power cables.
In 1988, Leader Cable merged with Universal Cable under Leader Universal Holdings, which was previously listed on Bursa Malaysia before being privatised by HNG Capital in 2012.
In 2014, HNG Capital disposed of its entire stake in Leader Cable and Universal Cable to Sarawak Cable for RM210 million.
Deloitte Malaysia said the restructuring allows Leader Cable to continue supplying Tenaga Nasional Bhd (KL:TENAGA) for cable infrastructure projects across Peninsular Malaysia, including high-voltage transmission and low-voltage distribution projects, while preserving more than 300 local jobs and maximising returns to creditors.
“Leader Cable has a long history in Malaysia as one of the nation’s largest cable manufacturers. This landmark transaction sets a new precedent in Malaysia where a company in liquidation can be successfully restructured and be returned to going concern status,” Khoo said.