Destini Berhad (“the Company”) wishes to announce that it had been served with a Winding Up Petition ensued from a Summary Judgment entered against its indirect subsidiary, Safeair Technical Sdn Bhd and Destini Berhad, details of which are as follows:

1)          Date of service of the Writ of Summons and Statement of Claim against Safeair Technical Sdn Bhd and Destini Berhad

TCR had filed a writ of summons and statement of claim on 8th January 2021 against Safeair Technical Sdn Bhd (“SAT”) and Destini Berhad (“DB’) (Suit No. BA-22NCVC-2-01/2021: for unpaid invoices and penalty for early termination of Full Service Rental Agreement. DB was sued as a corporate guarantor to SAT.

On 18th January 2021, Messrs Mansoor Saat & Co (“MS”) filed a memorandum of appearance for and on behalf of SAT and DB.

On 8th February 2021, MS filed a defence. Thereafter, TCR obtained a summary judgement on 21st June 2021

2)          Details of the default or circumstances leading to the filing of the Winding Up Petition and the particulars of the claim under the Winding Up Petition, including the amount claimed for and the interest rate

The circumstances leading to the filing of the Writ of Summons against SAT and DB was due to the outstanding invoices payment and penalty for Full-Service Rental Agreement (FSRA), interest on the principal amount, plus 5% interest from date of judgment until full settlement due and owed by SAT .

DB, through its wholly-owned subsidiary, Destini Aviation Sdn Bhd had entered into a Share Sales Agreement (“SSA”) with Rose Gold Sdn Bhd (“RGSB”) dated 31st December 2020 for the sale of shares it owned in SAT. Amongst the salient terms under the SSA is, payment due to TCR shall be paid before 31st January 2021. However due to current pandemic Covid-19 and the Movement Control Order restrictions, fulfillment of the terms of the SSA was delayed.  

3)          Details of the default or circumstances leading to the filing of the Winding Up Petition, including the amount claimed for and the interest rate

TCR served a statutory notice under Section 466 of Companies Act 2016 to DB on 7th July 2021, claiming for RM3,613,484.46, inclusive interest and cost awarded by the Court.

SAT and DB filed an appeal against the Summary Judgment on 19th July 2021 and an application to stay the execution of judgment on 28th July 2021. Nevertheless, TCR proceed to file a Winding Up Petition against DB.

The First Case Management date of the Winding Up Petition is fixed on 19th August 2021.

4)          Confirmation as whether SAT is a major subsidiary

              SAT is not major subsidiary of the Company.

5)          Cost of Investment in SAT

The Company do not have direct investment in SAT. The Company’s investment in aviation maintenance activities is made through its wholly owned subsidiary, Destini Aviation Sdn Bhd. (“DASB”). The Company has made full provisions on its total investment cost in DASB totalling RM16,733,333 as at 31 December 2020.

6)          The financial and operational impact of the Judgment on the Group

There is no material impact on the operation of the Destini Group.  This is in view that the Judgment sum of RM3,345,316.63  has been incorporated in the audited financial statements for the financial year ended 31 December 2020.

7)          The expected loss, if any, arising from the Winding Up Petition

The Company is not expected to incur any further loss arising from the Winding Up Petition.

8)          Steps taken in respect of the Winding Up Petition.

SAT and DB filed an appeal against the Summary Judgment on 19th July 2021 and an application to stay the execution of judgment on 28th July 2021. The First Case Management date for the Appeal is fixed on 25th October 2021 and the Hearing for the Stay Application is fixed on 15th September 2021. We are currently negotiating on a without prejudice basis with TCR for the repayment.

This announcement is dated 6 August 2021.