KUALA LUMPUR (May 20): Mega First Corp Bhd (KL:MFCB) said its 50%-owned oleochemical joint venture, Edenor Technology Sdn Bhd, has voluntarily applied for judicial management.
Edenor applied for the judicial management order at the High Court on Wednesday for the company and a slew of its units, the group said in a bourse filing on Wednesday. Mega First’s JV partner in Edenor is 9M Technologies Sdn Bhd.
The units are Edenor Oleochemicals (M) Sdn Bhd, Edenor Surfactant (M) Sdn Bhd, Edenor Speciality Chemicals Sdn Bhd, Edenor Speciality Esters (M) Sdn Bhd, Edenor Oleochemicals Specialities (M) Sdn Bhd and 75%-owned Edenor Oleochemicals Rika (M) Sdn Bhd.
Judicial management is court-supervised debt restructuring. Mega First noted that Edenor has incurred losses over the past year, “which have materially and adversely affected its ability to meet its obligations”.
It said performance was expected to improve, but instead “deteriorated more severely than previously anticipated” in the first four months of 2026, as Edenor’s financial position continued to worsen.
“In view of the foregoing, the board is of the opinion that the appointment of a judicial manager is necessary to facilitate the restructuring of Edenor’s obligations and to preserve the value of its business and assets for the benefit of its creditors and stakeholders,” the group said.
Filing the judicial management order application automatically grants Edenor an automatic moratorium on legal action from its creditors until the application is concluded.
Mega First said Edenor has applied for the appointment of Lim Tian Huat and Chiang Teng Guan of Messrs Rodgers Reidy & Co as interim judicial managers.
“Based on the latest available information, Mega First does not expect any immediate material financial impact on the group arising from the application,” it added.
Mega First invested in the oleochemical JV in 2021.
In August 2021, Edenor acquired Sime Darby Plantation Bhd-PTTGC International Pt Ltd JV’s Asia-Pacific business of Emery Oleochemicals (M) Sdn Bhd and Emery Speciality Chemicals Sdn Bhd for RM38 million.
Shares of Mega First ended three sen or 0.96% higher at RM3.15 on Wednesday, valuing the group at RM3.11 billion.