Mohd Radzi Abdul Hamid J:

Introduction

[1] This a decision on the Applicants' application via encl 1 for:

(i) an order pursuant to s 366(1) of the Companies Act 2016 granting leave to the Applicants to convene a Creditors' Meeting for the purpose of presenting for approval a scheme of arrangement between the Applicants and its respective Scheme Creditors; and

(ii) a restraining order pursuant to s 368(1) of the Companies Act 2016 to stay all proceedings initiated by the Applicants' creditors.

Background

[2] The Applicants are manufacturers of parts and components in the automotive industry collectively known as the 'SPA Group'. They are inter-related via a common majority shareholder Dato Sri Lim Teck Boon who holds in excess of 95% shareholding in the Applicants. The Applicants have experienced serious financial issues, amongst others, poor cashflow and cost overruns as a result of the Covid-19 pandemic and that has impacted its financial well-being and its commitments to a number of financial institutions.

[3] There was an earlier application for judicial management and proposed scheme of arrangement ("Previous Scheme") via Originating Summons No. MA-28JM-1-11/2023 by the 1s