Bekir files to intervene in law firm’s interim judicial management of Sarawak Cable
KUALA LUMPUR (Feb 28): Datuk Seri Mahmud Abu Bekir Taib has formally moved to challenge the court’s decision to place Sarawak Cable Bhd (Sarawak Cable) under interim judicial management (IJM), as initially requested by Messrs Krish Maniam & Co, according to a report by The Edge.
In an affidavit submitted recently through legal representatives from Messrs Dinesh Ratnaraj Partnership, Abu Bekir, who serves as a director and shareholder of Sarawak Cable, strongly criticised Messrs Krish Maniam’s continued reliance on what he termed “unrealistic aspirations” of reviving the company with assistance from the UK-based Serendib Capital Ltd.
“The entire judicial management strategy is a futile exercise, wasting valuable time and resources,” The Edge quoted Abu Bekir as saying in the affidavit, pointing to the company’s dire financial straits.
The son of former Sarawak governor the late Tun Pehin Sri Abdul Taib Mahmud also emphasised his alignment with the liquidation approach advocated by AmBank Bhd and Hong Leong Islamic Bank, describing it as the most pragmatic resolution.
Abu Bekir acknowledged that Messrs Krish Maniam had introduced Serendib Capital as a potential partner to revitalise Sarawak Cable.
However, he expressed scepticism regarding the feasibility of such efforts, underlining the company’s long-standing financial challenges.
As a director, Abu Bekir stated his fiduciary obligation to safeguard the interests of creditors, given Sarawak Cable’s insolvent condition.
The company has been under significant scrutiny since September 2022, when it fell into the Practice Note 17 (PN17) classification after external auditors questioned its ability to sustain operations.
Subsequently, Malacca Securities Sdn Bhd was appointed as the principal advisor for Sarawak Cable’s proposed regularisation strategy.
Sarawak Cable entered judicial management in July 2023, following the High Court’s approval of Messrs Krish Maniam’s application.
The law firm, claiming unpaid legal fees, had initiated the process to recover outstanding amounts through judicial intervention.
The firm’s involvement also encompassed facilitating a scheme of arrangement and introducing Serendib Capital as a potential “white knight” investor.
However, Sarawak Cable later severed ties with Serendib Capital in May, further replacing Messrs Krish Maniam as its legal representative.
This development followed a billing dispute involving six invoices amounting to RM345,908 in unpaid legal fees.
The High Court has scheduled case management on March 7 to deliberate on Abu Bekir’s motion to intervene in the ongoing proceedings.
-Agensi
