KUALA LUMPUR (Nov 3): Asdion Bhd (KL:ASDION) has secured court permission to convene a meeting of seven of its creditors, with listed claims totalling RM4.66 million, to consider a proposed debt restructuring.
According to a bourse filing on Tuesday, Asdion said the Kuala Lumpur High Court also issued three-month restraining orders for the company and its 51%-owned subsidiary, Transeaways Shipping Sdn Bhd, protecting them from creditor action.
The seven creditors, grouped under Class 4 of the proposed scheme of arrangement, will meet within three months of the order unless the court allows an extension. They must receive at least 21 days’ notice, together with documents explaining the proposal.
The filing did not disclose the total amount of claims across all six creditor classes or specify the proposed settlement terms for Class 4.
Under the proposal, creditors in Classes 2, 3 and 5 may individually agree to accept ordinary shares in Asdion to settle their claims. Those in Classes 1 and 6 are proposed to be paid in cash, subject to the court’s directions.
Claims across all six classes will be verified before creditors’ voting rights and settlement entitlements are finalised, said the company.
Gabriel Teo Chun of GTC Corporate Recovery has been appointed scheme manager for both companies to oversee the verification process, assist with the creditors’ meeting and supervise implementation, subject to the required approvals.
The court protection granted to Asdion and Transeaways does not extend to other companies within the group or any guarantor. It also does not limit Bursa Malaysia Securities’ regulatory powers or alter deadlines for Asdion to meet its regularisation obligations.
The court’s decision does not constitute final approval of the restructuring, which still requires creditor consent, further court approval and applicable corporate and regulatory clearances, according to the filing.
Asdion, a freight forwarding and trucking services company, was classified as a Guidance Note 3 (GN3) company in July 2024 after its external auditors flagged concerns about its ability to keep operating.
Asdion shares have been suspended since July 14 after it failed to appoint a sponsor for its plan.
In August, Bursa granted the company an extension until Jan 31, 2027 to submit its proposed regularisation plan.