Schemes of Arrangement and Corporate Rescue

A scheme of arrangement allows a financially distressed company to restructure its debts and implement a turnaround. The company may seek a restraining order to stay legal proceedings while it restructures its debts. Our experience in this area includes, acting for creditors in the first airline restructuring scheme in Malaysia, assisting debtor companies in their schemes of arrangement, devising and drafting explanatory statements and scheme documents together with financial advisers as well as making or resisting applications for restraining orders in a scheme of arrangement.  We have also advised on the drafting of various financing and security documents.

We are also experienced in combining various restructuring options and implementing the appropriate restructuring strategy. Options would include voluntary out-of-court processes, capital reductions, transfers of assets and liabilities, and sale and issuance of shares, among other things.
Our practice group has also acted in various cases involving applications for judicial management orders. Judicial management is part of Malaysia’s newly introduced corporate rescue mechanisms that came into force on 1 March 2018.  It is a rescue mechanism supervised by the court which is aimed at allowing financially distressed companies to rehabilitate.

Members of our practice group often provide talks on the new tools provided for in the new corporate rescue mechanisms that came into force on 1 March 2018.