KUALA LUMPUR (Dec 2): The High Court here on Thursday (Dec 2) approved the schemes of arrangement of Top Builders Capital Bhd (formerly known as Ikhmas Jaya Group Bhd) and its subsidiaries with its creditors.
Judicial Commissioner Ong Chee Kwan granted the sanction order to Top Builders and its subsidiaries — Ikhmas Jaya Sdn Bhd and Ikhmas Equipment Sdn Bhd — approving the schemes.
The order granted by the High Court was obtained as part of the group’s overall restructuring and rehabilitation plan by way of a scheme arrangement with its creditors.
Meanwhile, Lee Shih and Pang Huay Lynn of Lim Chee Wee Partnership appeared for Top Builder and its subsidiaries.
Top Builders in a bourse filing on Thursday said the group and its subsidiaries obtained the order, pursuant to Section 366 of the Companies Act 2016.
Section 366 is a statutory mechanism that provides relief for companies to propose a compromise with its creditors, instead of being wound up.
The group said that the schemes of arrangement will take effect once the sanction order is lodged with the Companies Commission of Malaysia.
Initially, the court had fixed to deliver its decision on the schemes of arrangements on Wednesday (Dec 1) but this was postponed to Friday (Dec 3). However, due to the recently announced public holiday on Friday, Ong delivered his decision on Thursday.
In a filing on Aug 26, 2021, the group said its scheme of arrangement presented in a court-convened creditors’ meeting had been approved by the requisite majority in value of creditors present.
The court ordered the creditors to attend the meeting for the group's restructuring, while a restraining order against them was obtained on Dec 31, 2020.
Additionally, the High Court had granted a three-month extension to the restraining order on Sept 22, making it valid until Dec 31.
The extended order was to restrain Top Builders’ creditors from taking action against the group and its assets.
These orders were also obtained as part of the group’s overall restructuring and rehabilitation plan by way of a scheme of arrangement with its creditors.
The group had appointed Ernst & Young PLT as its financial adviser to assist in the scheme of arrangement.