KUALA LUMPUR (Bernama) -- Dolomite Corporation Bhd has been classified as an affected listed issuer under Practice Note 17 after it was unable to pay its debts as its liabilities have far exceeded its assets.

       As of Dec 31, 2020, the investment company, which is the parent of 14 subsidiaries has net liabilities of RM59.57 million.

       The group is principally involved in property development, construction and sand mining activities.

       "At that material time, the company was facing the possibility of winding-up as it has received the statutory notice pursuant to Section 466 (1) (a) of the Companies Act 2016 from the solicitors for Maybank International Labuan Branch to demand the sum of US$38.19 million (US$1=RM4.19) and the costs awarded by the court within 21 days,” the company said in a filing with Bursa Malaysia.

       The announcement was following the Judicial Management Order (JM Order) made on Sept 23, 2021.

       Dolomite said the application for the JM Order was for the survival of the company or the whole or part of its undertaking as a going concern.

       Upon the appointment of a Judicial Manager, the advice and the expertise of an insolvency practitioner will be able to nurse the financial health of the company that will allow it the chance of obtaining a greater recovery of the debts owed to all of its creditors and/or increase its effort to reduce its debts which will ultimately benefit all of the company’s creditors.