KOTA KINABALU: Debt-ridden Sabah Forest Industries Sdn Bhd (SFI) failed in its bid to overturn a winding-up order made against it by the High Court in 2021.
The Court of Appeal on Wednesday (Sept 10) in a unanimous ruling struck out SFI’s appeal with costs following a preliminary objection raised by Sabah Development Bank Bhd (SDB).
“The Appellant (SFI) failed to justify to the Court of Appeal why it was nearly two years late in serving its Notice of Appeal on SDB, the interveners in SFI’s appeal.
“Accordingly, SFI’s appeal was struck out,” said Tengku Datuk Fuad Tengku Ahmad, who acted for SDB.
He said SFI was indebted to the SDB to the tune of some RM120mil, including interest.
“Sabah Development Bank’s original loan to SFI of RM93mil is unsecured and was granted under the then Warisan Government in 2019.
“Since then, I am unaware of any repayment made by SFI,” Fuad said.
The unsecured loan was made to SFI despite the company being some RM1.5bil in debt, in receivership and having ceased its operations in 2016.
Now that the Court of Appeal has ruled, Fuad said it was finally time for SFI’s assets to be realised in favour of creditors, some of whom have been denied their rights since 2017.
SFI has since had its timber concessions cancelled by the state government.
The Court of Appeal Quorum was represented by Datuk Seri Mohd Firuz Jaffril, Datuk Dr. Alwi Abdul Wahab and Evrol Mariette Peters while counsels S.Vanugopal and J. Marimhuthu appeared for SFI.
