KUALA LUMPUR (Oct 23): Ahmad Zaki Resources Bhd (KL:AZRB) has secured a three-month restraining order that will shield it from legal action by its creditors, giving the group time to work out a proposed scheme of arrangement.

The engineering and construction group said its wholly-owned subsidiary Ahmad Zaki Sdn Bhd (AZSB) was granted the order by the High Court for the period from Oct 21, 2026 to Jan 20, 2027, according to its bourse filing on Friday. The court has also fixed Dec 28 for the hearing of AZSB’s application for a convening order.

AZRB said it does not expect the restraining order to have any material adverse impact on the group’s financial position or operations, adding that further announcements would be made in due course.

According to the group’s previous filings, AZSB is not a major subsidiary of AZRB.

The group applied for the restraining order in late August as it worked towards formulating a proposed scheme of arrangement with its creditors. The move comes amid a series of winding-up petitions faced by the group, which also drew a public reprimand from Bursa Malaysia Securities last month over delays in disclosing the petitions.

Bursa said AZRB had failed to promptly disclose four winding-up petitions involving the group and its wholly-owned subsidiaries. The petitions, which involved claims totalling about RM9.41 million, were announced between May and July this year, although AZRB had received them 10 to 50 days earlier.

As at end-June 2026, AZRB had RM1.42 billion in current liabilities against RM698.73 million in current assets, leaving it with negative working capital of RM721.27 million.

Shares of AZRB closed unchanged at 8.5 sen on Friday, giving it a market capitalisation of RM52.8 million. The counter has fallen over 46% year to date.