Kwan Will Sen and Joyce Lim write about the recent judgment involving AirAsia X’s restructuring and its significance under the Cape Town Convention.
The Malaysian High Court in Kuala Lumpur had on 19 February 2021 handed down a significant judgment (click here for the grounds of judgment) in relation to AirAsia X Berhad (“AAX”)’s application for leave to convene creditors’ meeting for purposes of considering and approving a scheme of arrangement (“Leave Application”).
It analysed and interpreted certain provisions under the Convention on the International Interests in Mobile Equipment (“the Convention”) and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (“the Protocol”), in particular that of Article XI(10) of the Protocol. Continue reading →
In EY Malaysia’s Transactions Insights (February 2021), it was pointed out that the prolonged impact of the COVID-19 pandemic continues to disrupt Corporate Malaysia, financially and operationally. Almost a year on, the magnitude of financial risks has increased. A vast majority of companies would require some form of recapitalization to improve their financial position.
I identify six much-needed reliefs to provide a shot in the arm for Corporate Malaysia. The reliefs will help to inoculate and strengthen businesses against further distress.
The Privy Council’s decision in Byers v Chen Ningning  UKPC 4 reiterates certain key points of law on the director’s fiduciary duty to the company. A director who knows that a fellow director is acting in breach of duty or that an employee is misapplying the assets of the company must take reasonable steps to prevent that from happening.
Lee Shih and Lynn comment on the Federal Court proceedings involving points of law on judicial management
The Federal Court in the case of Million Westlink Sdn Bhd will now decide on an important area on judicial management law. Whether unsecured creditors can appear in an application for a judicial management order and oppose the making of the judicial management order. Leave to the Federal Court was granted on 4 January 2021. Continue reading →