Sentoria Group Bhd has filed a writ at the High Court of Malaya against OCBC Bank (Malaysia) Bhd, seeking to invalidate corporate guarantees issued in connection with two of its subsidiaries.
In a filing on Tuesday (Feb 3), the PN17 company said the writ was lodged on Jan 30 and involves guarantees provided to OCBC Bank on behalf of Sentoria Borneo Land Sdn Bhd and Sentoria Borneo Samariang Sdn Bhd, both wholly owned units that are currently under receivership and management.
The company is seeking a court declaration that the corporate guarantees are not enforceable.
Sentoria is seeking a court declaration that the guarantees are unenforceable, an order to cancel them, and compensation or damages amounting to RM679 million.
The company said the writ has yet to be served on OCBC Bank and is expected to be delivered within six months from the filing date.
In April last year, Sentoria announced that receivers were appointed to both subsidiaries after they failed to meet repayment obligations under loan agreements by the March 28, 2025 deadline.
Sentoria Borneo Samariang, classified as a major subsidiary, recorded negative net assets of RM29.7 million as at Sept 30, 2023, representing 18% of the group’s total assets. Sentoria Borneo Land, which is not a major subsidiary, posted negative net assets of RM48.7 million during the same period.
At the group level, Sentoria reported a net loss of RM89.04 million on revenue of RM7.55 million for the financial year ended Sept 30, 2024 (FY2024). The group has been loss-making since FY2019 and was classified under PN17 in December 2024 after shareholders’ equity fell to 33% of its issued and paid-up capital.
Earlier this month, Bursa Malaysia granted Sentoria a six-month extension until June 3, 2026, to submit its regularisation plan to address its PN17 status.
Sentoria shares were unchanged at 1.5 sen at the midday break on Tuesday, valuing the group at RM9.34 million.
