In the latest chapter of KNM Group’s high-stakes restructuring, the High Court has allowed the company to proceed with its fifth scheme of arrangement proposal. However, the Court declined to grant a restraining order, which would have given KNM a moratorium on legal proceedings filed against it.
This is one of the first reported decisions on the amended scheme of arrangement provisions. The decision deals with repeat restructuring attempts, related-party creditor classification concerns, and the ‘VC George Test’ for the grant of restraining orders.
I briefly analyse the decision of Judicial Commissioner Tuan Saheran Suhendran in his Grounds of Judgment dated 12 March 2025. I had earlier set out the legal framework for the amended scheme of arrangement and restraining order.
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