KUALA LUMPUR (Sept 18): Capital A Bhd (KL:CAPITALA) has proposed a debt restructuring scheme involving wholly owned subsidiary Move Digital Sdn Bhd, in a bid to resolve its historical liabilities.
Move Digital is an investment holding company for Capital A, which currently holds a 99.56% stake in fintech firm BigPay Pte Ltd and a 13.6% stake in Tune Protect Group Bhd (KL:TUNEPRO). It does not carry out any operating business of its own.
Under the proposed scheme of arrangement, Move Digital would potentially sell all or a majority of its equity interest in BigPay, carry out an orderly divestment of its 13.6% stake in Tune Protect and recover receivables estimated at RM32.2 million.
Proceeds from these assets would be distributed to creditors, which are primarily Capital A and its related companies, according to a bourse filing on Friday.
A scheme of arrangement is a court-supervised process that allows a financially distressed company to restructure its liabilities with its creditors.
As at end-December 2025, Move Digital had a net liability position of about RM292 million and "limited" cash resources, Capital A said.
Its liabilities mainly comprise amounts owed to companies within the group, as well as obligations arising from arbitral awards requiring Move Digital to acquire the minority interests in BigPay held by co-founders Christopher Davison and Navin Rajagopalan.
The arbitration arose from claims by Davison and Navin over alleged breaches of investment and shareholders’ agreements, wrongful termination and minority oppression.
An arbitral partial award issued in December 2024 required Move Digital to acquire their shareholding in BigPay for US$14.74 million (RM60.15 million), while a final award on costs issued in July 2025 required Move Digital to pay their legal costs of US$4.13 million (RM16.85 million).
Capital A said the proposed exercise was aimed at streamlining its corporate holdings and resolving historical liabilities, while allowing it to stop funding loss-making BigPay and reallocate capital towards higher-return core operations.
The group said the exercise would also allow it to deconsolidate BigPay’s historical operating losses from its financial statements.
“We are cleaning up our legacy assets and focusing 100% of our energy and capital on our high-growth businesses. This move makes our financial position stronger and allows us to double down on what we do best,” Capital A group chief executive officer Tan Sri Tony Fernandes said in a statement.
Shares of Capital A rose half a sen, or 2.2%, to settle at 23.5 sen on Friday, giving the group a market capitalisation of RM1.05 billion.