corporate rescue

Inns of Court Malaysia Webinar: Judicial Management and Corporate Rescue

Lee ShihLeave a comment

The Inns of Court Malaysia will be holding another instalment of its flagship event, the ICM Legal Education Series. This webinar is on Friday 22 July 2022 at 4pm. Registration is required. The event is free for Inns of Court Malaysia members and RM50 for non-members.

This talk is titled Judicial Management and Corporate Rescue: Balancing the Rescue of Distressed Companies and the Rights of Creditors.

You may download the poster for email registration or sign up via the Google Forms link. Continue reading →

Case Update: Court of Appeal Rules Against Scomi Group Judicial Management Appeal

Lee ShihLeave a comment

Today, the Court of Appeal dismissed Scomi Group Bhd’s appeal against the High Court decision dismissing its judicial management application.

As set out earlier, the High Court had ruled on two points when dismissing the judicial management application of Scomi Group Bhd, being a listed company. Continue reading →

Case Update: Court Protection for Judicial Managers, Being Officers of the Court

The Malaysian LawyerLeave a comment

Pang Huey Lynn writes about this novel decision where a party filed a suit against a judicial manager.

The High Court in the case of Demeter O&G Supplies Sdn Bhd v Datuk Stephen Duar Tuan Kiat (as judicial manager of Scomi Oiltools Sdn Bhd and Scomi KMC Sdn Bhd) (grounds of judgment dated 30 November 2021) allowed the judicial manager’s application to strike out the civil suit filed against him.

One of the key issues was whether a party could file a suit against a judicial manager without first obtaining permission from the judicial management court.

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Case Update: Disregard or Discount Related Creditors’ Vote in a Scheme of Arrangement

Lee ShihLeave a comment

The High Court in Re Top Builders Capital Berhad and others (No. 2) [2022] MLJU 1 (grounds of judgment dated 5 January 2022) has set out several important points for the sanction of a scheme of arrangement. Some of these issues have been decided for the first time under Malaysia law.

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Case Update: Filing of Judicial Management Will Restrain Advertisement of Winding Up

Lee ShihLeave a comment

The Court of Appeal in Kumpulan Liziz Sdn Bjd (in liquidation) v Pembinaan Azam Jaya Sdn Bhd (grounds of judgment dated 25 November 2021) ruled that the judicial management moratorium will extend to restraining any advertisement or gazetting of a winding up petition.

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Ex Parte Appointment of Interim Judicial Manager over Khee San Food Industries

Lee ShihLeave a comment

On 19 November 2021, The Edge reported that the candy manufacturer, Khee San Food Industries Sdn Bhd (KSFI), has been placed under interim judicial management. KSFI is the wholly-owned subsidiary of the public-listed Khee San Bhd.

On 17 November 2021, the Court made an ex parte Order to appoint an interim judicial manager, Datuk Adam Primus Varghese Abdullah of Messrs ADAMPRIMUS, over KSFI. The interim judicial management of KSFI  in turn resulted in Khee San Bhd triggering Practice Note 17 (PN17). PN17 is essentially the financial distress criteria set by Bursa Malaysia Securities. KSFI’s assets account for over half of the total assets of Khee San on a consolidated basis.

I believe this is the first time a financial institution creditor has applied to place the debtor company under judicial management. I set out some of the guiding legal principles and the facts of this case.

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