KUCHING: Sarawak Cable Bhd (SCB) has made a final attempt to salvage its future, with its adviser Malacca Securities Sdn Bhd submitting a direct debt restructuring offer to the creditor banks of Leader Cable Industry Bhd (LCIB).
The offer, made on March 19, 2025, has yet to receive a response from LCIB’s creditor banks or interim liquidators Messrs Deloitte Restructuring Services.
LCIB and Universal Cable (M) Bhd (UCMB) – both subsidiaries of SCB – were ordered to be wound up in May 2024 following failed restructuring talks.
SCB has been under PN17 status since September 30, 2022.
Its 2024 annual report, released on Friday, stated that Malacca Securities believes an agreement is in place with SCB’s own creditor banks and that acquiring LCIB is key to restoring SCB’s operations and exiting PN17 status.
SCB, a cable manufacturer, is currently managed by an interim judicial manager appointed by the High Court.
Before appointing Malacca Securities as principal adviser on September 27, 2024, SCB had enlisted Serendib Capital Ltd as a “white knight” to restructure its RM394 million debt and RM124 million owed to other creditors.
Despite Serendib’s negotiations and a joint restructuring plan for SCB, LCIB and UCMB proposed in March 2024, the plan was rejected.
OCBC Bank (Malaysia) Bhd subsequently filed winding-up petitions, and Deloitte was appointed interim liquidator.
On September 6, 2024, Deloitte announced the sale of UCMB’s assets to Olympic Cable Company Sdn Bhd for RM85 million and invited expressions of interest (EOI) for LCIB.
Deloitte later rejected Malacca Securities’ revised offer for LCIB in favour of a higher bid from a third party.
However, SCB has since learned that no sale and purchase agreement was ever signed.
In response, Malacca Securities submitted a final direct offer to LCIB’s creditors earlier this month.
SCB posted a RM344 million loss as of November 30, 2024.
Its auditors have flagged concerns about its viability as a going concern.
The company stressed that a successful bid for LCIB is critical for it to resume operations and reclaim its position as Malaysia’s top electricity cable manufacturer.
SCB said the period from June 1, 2023 to November 30, 2024 has been its most challenging yet.
At present, none of its remaining subsidiaries – Universal Cable (Sarawak) Sdn Bhd, Sarwaja Timur Sdn Bhd and Aerial Power Lines Sdn Bhd – are engaged in meaningful business.
The group’s survival, it said, depends entirely on the success of its restructuring efforts.
