Destini wishes to announce that its indirect subsidiary, DSBE had been served with a Winding-Up Petition, details of which are as follows:

1) Date of presentation of the Winding-Up Petition

DSBE had on 8 March 2021 received a sealed winding-up petition dated 19 February 2021 from Messrs. Vin & Isaac Lee, the Solicitors who act on behalf of Doedijns B.V. (Formerly Sypack B.V.) (“Doedijns” or “the Petitioner”) claim against DSBE for the outstanding sum of €131,256.07 equivalent to (RM658,905.47 at RM5.02 to €1 as at 29 June 2021), being the outstanding amount due pursuant to the Settlement Agreement dated 30 April 2020 inclusive 5% interest per annum on the outstanding amount.

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 Winding-Up Petition against DSBE was due to the fact the DSBE had failed to pay the second instalment of the unpaid outstanding debt pursuant to the Settlement Agreement to the Petitioner.

3) Confirmation as whether DSBE is a major subsidiary

DSBE is not major subsidiary of the Company.

4) Cost of Investment in DSBE

The Company do not have direct investment in DSBE. The Company’s investment in shipbuilding activities is made through its wholly owned subsidiary, Destini Armada Sdn Bhd. (“DASB”). The Company has made full provisions on its total investment cost in DASB totalling RM77,799,998.00 as at 31 December 2020.

5) The financial and operational impact of the Winding-Up Petition on the Group

There is no major impact on the operation of the Destini Group. This is in view that the amount owing has been incorporated in the financial statements.

6) 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.

7) Steps taken in respect of the Winding-Up Petition

In view of DSBE had breached the terms of the Settlement Agreement, dated 30 April 2020, Doedijns served a notice pursuant to Section 465 of the Companies Act, 2016 dated 4 January 2021 and demanded a sum of €131,256.07 (excluding cost) as per the amount stated in the notice pursuant to Section 465 of the Companies Act, 2016. As there were no payment received by the Petitioner, the Petioner proceeded with the filing of the winding-up petition. DSBE was served with the  winding-up petition on 8 March 2021. Both parties agreed to settle this matter, wherein DSBE to pay the Petitioner sum of €154,000 including cost, as full and final settlement amount.

On 22 June 2021, the Court adjourned the Hearing to 30 August 2021, pending settlement between parties. In view of the same, DSBE will make full settlement of the outstanding amount before the hearing date.

Further announcement on the material development of the above matter will be made to Bursa Malaysia Securities Berhad from time to time.

This announcement is dated 29 June 2021.