KUALA LUMPUR (Oct 30): The High Court (commercial division) on Monday granted three companies — Global Mariner Offshore Services Sdn Bhd, Blackstone Technology Sdn Bhd, and Dynac Sdn Bhd — an interim injunction against TH Heavy Engineering Bhd (THHE) and its liquidators to restrain them from calling for a creditors' meeting, and therefore to maintain the status quo after the creditors' meeting that had been held on Oct 4.
The order was granted by judge Ong Chee Kwan via online proceedings, after THHE and the liquidators consented to the application. The three companies were represented by David Thomas Mathews, Olivia Loh and Lai Ann Xing.
The three companies named THHE, liquidators Andrew Heng and Ashvin Mahendran, as defendants in the application which Ong granted the interim injunction, barring Ashvin as the chairman of the THHE creditors' meeting to convene, re-convene, or hold or proceed with any creditors' meeting.
The court also restrained the defendants from doing any acts or taking any steps to alter the status quo after the THHE creditors' meeting held on Oct 4 until the disposal of Global Mariner, Blackstone, and Dynac’s originating summons.
THHE and the liquidators were represented by Mark Ho and Eldarius Yong. The decision on Monday was confirmed with The Edge by Mathews.
Global Mariner was a joint-venture partner of THHE, where the High Court in July ordered THHE to pay Global Mariner US$63.42 million (RM288.72 million) in damages for breaching their shareholders' agreement.
As reported, THHE had applied to enter voluntary winding-up last month, and had called for a creditors' meeting on Oct 4.
Following that, Global Mariner, Blackstone Technology, and Dynac on Oct 19 filed an originating summons, sighted by The Edge, where it sought leave (permission) from the court to commence action or proceedings against THHE in the creditors’ voluntary liquidation and against Heng and Ashvin.
They claimed that the interests of THHE’s creditors, and that of its subsidiary THHE Fabricators Sdn Bhd (which is in members' voluntary winding-up), will not be properly safeguarded or adequately dealt with under the voluntary winding-up process.
Furthermore, the claimants allege that there is a genuine fear that the voluntary winding-up process was undertaken by THHE for reasons less than legitimate. They claim that there is reason to believe the voluntary winding-up process by THHE was to prevent a compulsory winding-up by the creditors from taking place, and put the liquidation in the hands of the directors’ choice of liquidators.
Global Mariner, Blackstone Technology, and Dynac argued that there is cause to investigate whether there was any financial mismanagement or misappropriation of funds or undue preference given or whether THHE’s directors had discharged their duties properly.
They further claimed that Heng and Ashvin do not have the requisite independence to act as interim liquidators or THHE's liquidators, and are in a position of conflict from their relationship and previous engagements with THHE.
The three companies claimed that Heng and Ashvin, as THHE’s interim liquidators, had acted unfairly and allegedly in breach of their statutory duties to THHE’s detriment and its creditors.
The hearing of the three companies' originating summons is fixed for Dec 14.