6 days ago
SCB seeks court direction over disputed asset sale
SCB is asking the court to determine whether LCIB's liquidators should accept MIE's offer to acquire assets of LCIB and whether they acted in the best interest of all creditors in doing so.
KUCHING: Sarawak Cable Berhad (SCB) has filed an application in the High Court of Kuala Lumpur to seek the court's direction over the proposed sale of assets belonging to its former subsidiary Leader Cable Industry Berhad (LCIB).
In a filing made through its solicitors Messrs S Ravenesan on May 28, SCB, currently under interim judicial management, is seeking clarity under Sections 461(1) and 486, read together with the Twelfth Schedule of the Companies Act 2016, as well as the inherent jurisdiction of the court.
The application centres on a proposed asset sale by LCIB to MIE Industrial Sdn Bhd (MIE), which SCB believes may not serve the best interests of LCIB's creditors or SCB's stakeholders.
SCB is asking the court to determine whether LCIB's liquidators should accept MIE's offer to acquire assets of LCIB and whether they acted in the best interest of all creditors in doing so.
SCB is also asking the court to determine whether the sale should proceed at all.
In the event the court finds that the liquidators did not act in the best interest of creditors, SCB is seeking an order to declare the sale of LCIB's assets to MIE as null and void, including any agreements related to the transaction.
The company is also requesting that the cost of the application be paid out of LCIB's assets.
On May 7, SCB's board announced plans to take legal action against LCIB's court-appointed liquidators Khoo Siew Kiat and Goh Hua Yang from Messrs Deloitte Restructuring Services PLT.
The board had exercised its residual powers, claiming that the disposal of LCIB's assets was prejudicial to SCB and amounted to wilful negligence.
Khoo and Goh were appointed as liquidators on May 15, 2024.
