Serba Dinamik Says Sukuk Default Could Have Significant Impact on Group Financial Performance

Serba Dinamik Holdings (Serba Dinamik) has confirmed that it has defaulted on a Sukuk worth USD 222.2 million (MYR 939.8 million), saying that the occurrence could have a substantial impact on the group's financial performance.

Why it Matters?

The default also implies that Sukuk holders have the right to demand the immediate payment of 25% of the outstanding amount of the Islamic bond, which was due to mature in May 2022. The group elaborated that the default "will give rise to several other potential events of default of the indebtedness under the company by virtue of the cross-default provision under the respective financing agreements".

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