JUDGMENT

Anand Ponnudurai JC:

Introduction

[1] This judgment primarily revolves around an application by a company pursuant to s 366 of the Companies Act 2016 (" CA ") in relation to a proposed scheme of arrangement with its creditors.

[2] Of significance, this judgment will also be dealing with the principles governing the granting of an order restraining further proceedings under s 368(1) of the CA not only against the applicant but also additionally to the applicant's holding company ("SGB") who had provided some of the applicant's creditors with corporate guarantees.

[3] Briefly, the applicant is a wholly-owned subsidiary of Sentoria Group Berhad ("SGB"). SGB and its subsidiaries are referred to as the "Sentoria Group".

[4] The applicant is the construction arm of Sentoria Group and has been the main contractor for the Sentoria Group's resort development projects as well as the general civil and building work for most of the Sentoria Group's property development projects.

[5] The Sentoria Group has undertaken and invested in several significant projects of considerable value and also owns several pieces of land. However, due to mismatch in funding, there has been a resultant cash