WHILE yesterday’s (Feb 14) unfavourable outcome in Serba Dinamik Holdings Bhd’s quest for a stay of the High Court’s order from making public the fact-finding update (FFU) by Ernst & Young Consulting Sdn Bhd (EY Consulting) was very much anticipated, there is nevertheless a silver lining for the global integrated oil & gas service provider.
Although Judicial Commissioner Wan Muhammad Amin Wan Yahya dismissed Serba Dinamik’s formal application for a stay, he did not specify the deadline for the company to release the FFU.
Whether the verdict is favourable or otherwise to Serba Dinamik is subjective as there is no denial that “the Sword of Damocles which hangs above the company’s head can fall anytime”.
For the record, yesterday’s High Court decision came about following Serba Dinamik having formally written to apply for a stay of an earlier decision (Feb 7) to reveal its FFU within two market days.
At this juncture, only Serba Dinamik knows best if this is merely a delay tactic or in fact, the content of the FFU is incomplete, hence not doing it justice as the company has claimed.
Whatever said and done, the latest development is that Serba Dinamik has commenced its appeal process at the appellant court by appealing against the High Court’s decision of not granting it the stay from release its FFU.
This process is expected to entail “at least six month of ding-donging time” according to people who are familiar with the appeal process.
Some investors are of the opinion that Serba Dinamik should just make the FFU public so that they can “move on with life”. This is because Bursa Malaysia Securities Bhd is adamant that the FFU’s is key to the lifting of its suspension which is now nearing four months.
This is after Serba Dinamik having fulfilled its obligation to release its outstanding annual report alongside its annual audited financial statements and auditors’ and directors’ report for the 18 months ended June 30, 2021 on Jan 6.
“Most of us have accepted the fact that we’ve gambled on the wrong horse and are more than willing to absorb the losses,” philosophised a retail investor who has dumped RM35,000 of his Employees Provident Fund (EPF) savings on the counter.
“Even though I may get back only a fraction of my original investment, the money can only be retrieved once trading in the stock resumes. Rather than for my money to be stuck, I would be able to utilise it to acquire other stocks which would perhaps enable me to recoup my losses.”
In a related development, it is understood that Serba Dinamik has applied for judicial management with regard to its Practice Note (PN17) status.
Recall that the company slipped into the PN17 status on Jan 6 after its external auditor expressed a disclaimer of opinion on its audited financial statements for the 18-month financial period ended June 30, 2021.
Following such classification, Serba Dinamik said it has 12 months to regularise its financial condition, failing which it could be delisted from Bursa Malaysia.
Serba Dinamik was last transacted at 35 sen at the close of the mid-day trading on Oct 22 prior to the trading suspension of its shares/warrants, hence giving the company a market capitalisation of RM1.3 bil. – Feb 15, 2022
