KUALA LUMPUR (Nov 2): The High Court on Thursday granted an injunction against THHE Fabricators Sdn Bhd, a subsidiary of TH Heavy Engineering Bhd (THHE), and two liquidators to stop them from altering the status quo of THHE Fabricators, which is undertaking a members' voluntary winding-up.
A voluntary winding-up can only be initiated when a company is solvent and possesses sufficient liquid funds to meet the fees, costs and expenses.
The injunction was granted by judge Ong Chee Kwan following consent from THHE Fabricators, which had been served an originating summons on the matter by creditors Blackstone Technology Sdn Bhd and Dynac Sdn Bhd.
On Monday, Blackstone and Dynac, along with Global Mariner Offshore Sdn Bhd, obtained an interim injunction against THHE and its liquidators to restrain them from calling for a creditors' meeting, and thereby maintaining the status quo after an earlier creditors' meeting on Oct 4.
Blackstone and Dynac were represented by lawyer David Thomas Mathews, while Mark Ho appeared for THHE Fabricators.
Apart from maintaining the status quo, the injunction against THHE Fabricators and the liquidators — Andrew Heng and Ashvin Mahendran of Baker Tilly Insolvency PLT — also restrained them from transferring, selling or distributing the assets of THHE Fabricators.
In the originating summons, Blackstone and Dynac said there is an imminent risk the liquidators would not act fairly and independently.
The two companies also alleged that there are serious discrepancies in the financials of the company and THHE concerning inter-company debts, and that there is a need to investigate the creation of liabilities and securities over the assets of THHE Fabricators, which may be liable to be set aside on the grounds of fraudulent or undue preferences in disregard of the interests of the creditors.
They also do not want Heng and Ashwin to take steps to realise the assets and businesses of THHE Fabricators for the purposes of its winding-up affairs and distributing the assets.
The two companies further claimed that unless the liquidators are restrained, there could be harm to the creditors, resulting in irreparable and incapable of being compensated by damages.
Md Jasman Bongek, a director of Blackstone and Dynac, claimed in an affidavit that there are concerns that the voluntary liquidation of THHE Fabricators, by way of members' winding-up, may be carried out for a less than legitimate purpose.
He added that there are grounds to believe that the company was insolvent at the time the members’ voluntary liquidation process was initiated, and he believes Heng and Ashvin may lack the independence to act as liquidators of the company.
Hence, they want Heng and Ashvin to be removed as the liquidators of THHE Fabricators, and for an independent liquidator to be appointed.
THHE Fabricators produces and sells offshore oil and gas related steel structures.