KOTA KINABALU: Sabah Forest Industries has been ordered to wind up by a High Court here after it failed to settle debts of about RM2.6mil.
Justice Leonard Shim ordered wind-up yesterday under Section 465(1) (e) of the Companies Act, over RM2,699,244.24 indebted to petitioner Lee Khoon Hoo & Anor and supporting creditor Sabah Development Bank.
He also ordered that the official receiver be appointed the liquidator of the company and the cost of RM5,000 be paid out of the company’s assets.
SFI, which was set up by the Sabah government in 1982, was previously one of the major industries aimed at spurring economic growth in the state.
The petitioner Lee Khoon Hoo & Anor was represented by counsel Cindy Han while Sabah Develop-ment Bank’s lawyer was Tengku Datuk Ahmad Fuad.
SFI was represented by counsel S. Vanugopal.
When contacted, Fuad said SFI had been given many chances since 2017 to settle the debt.
“SFI will now go to liquidation,” he said.
Over the years, SFI was sold to different private companies.