Today, the Court of Appeal dismissed Scomi Group Bhd’s appeal against the High Court decision dismissing its judicial management application.
This update is further to the earlier High Court decision in Re Scomi Group Bhd which held that public listed companies cannot apply for judicial management.
Another public listed company, Dolomite Corporation Berhad, has also failed in its judicial management application.
On 8 March 2022, Dolomite announced that the Shah Alam High Court had dismissed its judicial management application. Among others, the Court held that public listed companies are not allowed to apply for judicial management pursuant to section 403(b) of the Companies Act 2016 i.e. being a company subject to the Capital Markets and Services Act 2007. Continue reading
The High Court in Asiabio Capital Sdn Bhd v Seacera Group Bhd  MLJU 2598 (grounds of judgment dated 3 November 2021) has emphasised the mandatory pre-conditions for the grant of a restraining order in a scheme of arrangement.
This short decision touches on the importance of showing that the proposed scheme of arrangement must involve more than half of the total debts of the debtor company.
The High Court in Re Top Builders Capital Berhad and others (No. 2)  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.
Our guest writer, Nathalie Ker, writes on the top 5 restructuring and insolvency cases in 2021.
We continue the Top 5 cases series with the top five restructuring and insolvency cases in Malaysia for the year 2021. You can also read last year’s 2020 edition.
This year’s cases cover schemes of arrangement, judicial management and winding up.
On 16 December 2021, Scomi Group Berhad (Scomi) made a stock exchange announcement that the Court of Appeal granted an interim preservation order to prevent legal proceedings against Scomi. In effect, Scomi seems to have obtained a moratorium against all legal proceedings despite the dismissal of its earlier judicial management application. There are some interesting issues that arise from this development. Continue reading