restructuring

6 Recent Developments in Restructuring and Insolvency: Malaysia Insolvency Conference 2023

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The Malaysia Insolvency Conference 2023 was held on 21 June 2023 and it made a return to a physical setting after 3 years. We saw a record turnout of attendees from the restructuring and insolvency community. I spoke at a panel session titled ‘Landmark Cases: Sharing on Insolvency and Restructuring’ and spoke with fellow insolvency specialists.

I set out a selection of 6 key recent trends we discussed and prepared for the panel discussion. I have also supplemented some of the legal points with additional research I made.

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Case Update: A Second Judicial Management Order – Extending JM Past 12 Months

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The High Court in Syed Ibrahim & Co v Trans Fame Offshore Sdn Bhd [2022] MLJU 1380 (grounds of judgment dated 16 June 2022) involved the Court granting a second judicial management order. In effect, this allowed for the company to be under judicial management even past the initial 12-month period of the first judicial management order.

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Inns of Court Malaysia Webinar: Judicial Management and Corporate Rescue

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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

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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: Further Decision That Listed Companies Cannot Apply for Judicial Management

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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 →

Case Update: Restraining Order Requires Scheme With More than 50% of All Debts

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The High Court in Asiabio Capital Sdn Bhd v Seacera Group Bhd [2021] 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.

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