KUALA LUMPUR: Sarawak Cable Bhd yesterday said Serendib Capital Ltd, a company which was initially part of a plan to revive the Practice Note 17 (PN 17) company, has filed a suit against it.
In a filing with Bursa Malaysia Securities Bhd, Sarawak Cable said the company and its directors were served with undated and unsealed copies of a Writ; a Statement of Claim; and a Notice of Application for Injunctive Reliefs on May 29, 2024 that has purportedly been filed at the High Court of Malaya Kuala Lumpur.
Sarawak Cable said it had witheld immediate disclosure of the action pending receipt of sealed documents.
It said despite repeated requests however, Serendib Capital's lawyers Messrs Rosli Dahlan Saravana Partnership, have yet to serve with the sealed documents.
Sarawak Cable said Serendib Capital seeks, among others, declaratory reliefs, specific performance, a permanent injunction and damages against the company over the termination of the Memorandum of Agreement (MoA) dated Dec 29, 2023 between the company and Serendib Capital.
The MoA to formulate a revival plan for Sarawak Cable, was terminated after Serendib Capital Ltd and the company were unable to agree on their working relationship given the delay in proposing and implementing any debt settlement with the company's creditors within the timeline of the MoA.
Sarawak Cable has appointed Messrs. Dinesh Ratnarajah Partnership to vigorously defend the company, Dato Seri Mahmud Abu Bekir Taib, Yek Siew Liong, Datuk Kevin How Kow, Redzuan bin Rauf, Russell Walter Boyd and Tai Yit Chan, who were all named in the suit.
Sarawak Cable said on the assumption that the documents were in fact filed against the company, the legal proceedings would not, in its view, have an impact on the company's PN 17 regularisation plan.
In a filing with Bursa Malaysia Securities last month, the company said it had identified a strong alternative party to carry out a resuscitation plan and was in the process of engaging the services of professionals towards proposing and implementing that plan.
Sarawak Cable's share price closed one sen higher to 15 sen yesterday, giving it a market capitalisation of RM55.9 million.