Sentoria goes to court to cancel OCBC bank guarantees, files RM679 mil claim

KUALA LUMPUR (Feb 3): Sentoria Group Bhd has filed a writ at the High Court of Malaya against OCBC Bank (Malaysia) Bhd, seeking to nullify corporate guarantees related to two of its subsidiaries.

In a filing on Tuesday (Feb 3), the Practice Note 17 (PN17) firm said the writ was lodged on Jan 30 and relates to corporate guarantees provided in favour of OCBC Bank on behalf of Sentoria Borneo Land Sdn Bhd and Sentoria Borneo Samariang Sdn Bhd.

Both entities are wholly owned subsidiaries of Sentoria and are currently under receivership and management.

The company is seeking a court declaration that the corporate guarantees are not enforceable, as well as an order to cancel the guarantees. It is also seeking compensation or damages amounting to RM679 million.

Sentoria said the writ has yet to be served on OCBC Bank and is expected to be served within six months from the date of lodgement.

In April last year, Sentoria announced that receivership appointments for Sentoria Borneo Samariang Sdn Bhd and Sentoria Borneo Land Sdn Bhd were triggered after both units failed to meet repayment obligations under loan agreements by the March 28, 2025 due date.

Sentoria Borneo Samariang, which is classified as a major subsidiary, reported 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, recorded 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 slipped into 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.

Shares in Sentoria were unchanged at 1.5 sen at the midday break on Tuesday, valuing the group at RM9.34 million.

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