10 Key Restructuring Changes in the Proposed Companies Amendment Bill 2020

The Companies Commission of Malaysia (SSM) has issued its Consultative Document Companies (Amendment) Bill 2020. The proposed amendments cover a wide range of areas. I will write another time on some of the other areas like beneficial ownership and other amendments.

One key aspect of the Companies Amendment Bill 2020 is the very significant amendments and strengthening of the restructuring framework through the scheme of arrangement and corporate rescue mechanisms. The proposed amendments follow similar moves taken by the United Kingdom and Singapore in assisting and helping distressed companies and ensuring safeguards for creditors’ interests.

I highlight the 10 most significant restructuring and corporate rescue amendments which are in the proposed Companies Amendment Bill 2020. I did take part in the initial consultation process as a member of some of the professional bodies. I very much welcome these much-needed restructuring and relief tools to help distressed businesses in the Covid-19 environment. Continue reading

Case Update: Court of Appeal Finds Unsecured Creditors Can Oppose Judicial Management Application


The Court of Appeal in the appeal involving Million Westlink Sdn Bhd (see the notes of proceedings of 21 July 2020 in the Court of Appeal Civil Appeal No. B-02(IM)-1590-08/2019) has confirmed that unsecured creditors have the right to be heard and to oppose the making of a judicial management order. The full grounds of judgment are not out yet.

This now overturns the earlier High Court decision in Million Westlink Sdn Bhd v Maybank Investment Bank Bhd & Ors [2019] MLJU 1721. The outcome of this Court of Appeal decision also appears to be similar to the High Court decision in Goldpage Assets Sdn Bhd (which I wrote about here).

When a company applies for judicial management, the company would be near insolvent. The company needs rescuing and an orderly dealing with its creditors. Hence, this Court of Appeal decision is important in clarifying that unsecured creditors have a right to appear and, if necessary, to oppose the making of the judicial management order.

PEMUDAH Webinar – Post Covid-19: Options for Companies to Emerge Stronger

On Thursday 23 July 2020 at 2.30pm, I will be moderating this webinar on restructuring and corporate rescue. The webinar is organised by PEMUDAH, Malaysia’s Special Task Force to Facilitate Business.

I will be joined by the speakers PohPoh Khoo of Ernst & Young and Kumar Kanagasingam of Lee Hishammuddin Allen & Gledhill .

We will cover strategy and insight from the perspective of an insolvency practitioner and legal practitioner. Companies can consider the options to restructure its debts, maintain a good financial position, and emerge stronger in the COVID-19 environment.

Registration is free and you can register here. Seats are limited.

Case Update: Receivers Can Seek For Continuation of Essential Supplies

The Court of Appeal in Boulevard Plaza Sdn Bhd v Gas District Cooling (Putrajaya) Sdn Bhd [2019] MLJU 1965 allowed the receiver and manager’s application to compel a chilled water provider to continue with the supply of chilled water to the company under receivership. This is a far-reaching ability to compel the continuation of certain essential supplies. This decision would also apply to the situation of a judicial manager seeking for the continuation of such supplies.

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Case Update: Unsecured Creditors Can Intervene in a Judicial Management Application

The High Court in its grounds of judgment dated 10 June 2020 in Goldpage Assets Sdn Bhd v Unique Mix Sdn Bhd held that unsecured creditors can intervene in a judicial management application. The unsecured creditors’ views can then be heard in opposing the making of the judicial management order. This is an important decision clarifying this often argued point.

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UK’s Corporate Insolvency and Governance Bill: Possible Reforms for Malaysia’s Restructuring Laws

In response to COVID-19, the UK has fast-tracked its Corporate Insolvency and Governance Bill (the PDF copy of the Bill is here and with helpful Explanatory Notes). The overarching objective of this Bill is to provide businesses with the breathing space they need to continue trading during this difficult time and to avoid insolvency. I set out seven of the key measures that UK is introducing and the possible reforms that Malaysia can adopt.

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