Bid to recover RM13m SFI debt
Published on: Friday, September 30, 2016
Kota Kinabalu: The fate of many Sabah Forest Industries Sdn Bhd staff hangs in the balance following action by Shell Timur Sdn Bhd to recover its outstanding debt believed amounting to RM13 million.Daily Express understands that negotiations are ongoing between the paper producer and Shell Timur Sdn Bhd which had obtained a court order to seal SFI's mill.It was also learnt that mill staff and workers had been instructed to vacate the premises. They were told to only take their personal belongings. Other sections of the company's operations were not affected.
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According to a source, a two-week period had been agreed by lawyers on both sides to reach some kind of settlement."I hope the matter will be settled soonest. I pity the workers and their families," said the source who estimated that the company employed over 1,000 staff, of which 90 per cent are locals.Shell Timur Sdn Bhd had been demanding payment of the amount owed for a long time and even proposed a payment schedule but apparently continued to be unsuccessful in recovering the debt.The source said the latest action taken by the oil and gas downstream company "is final".
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Sipitang-based SFI was founded in 1988. In 2007, it began operations as subsidiary of Ballipur Industries Limited (BILT) which is part of the Avantha Group of companies.The company is one of Malaysia's largest timber growers and wood processors. It manages forest estates totaling 288,000 hectares and pulp and paper manufacturing facilities. It is the country's only integrated pulp and paper manufacturer.
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