JUDGMENT

Ong Chee Kwan JC:

Introduction

[1] The applicants seek sanction for the schemes of arrangement as set out in Annexure A1, A2 and A3 of the applicants' Notice of Application ("encl 83" or "Sanction Application").

[2] The 1st applicant is a listed company on the Main Board of Bursa Malaysia. It is involved in the civil and building construction industry. The 2nd applicant is a wholly-owned subsidiary of the 1st applicant. In turn, the 3rd applicant is a wholly-owned subsidiary of the 2nd applicant.

[3] The 1st applicant's group of companies ran into severe financial distress, and the distress was further exacerbated during COVID-19 pandemic and the Movement Control Order ("MCO") restrictions on the construction industry.

[4] On 30 June 2020, the 1st applicant slipped into PN17 criteria. However, the Bursa Malaysia relief measures (arising from COVID-19 pandemic and MCO) provided time for the 1st applicant to stall a formal entering into PN17. The limited time period under the PN17 relief of only 18 months (ie up to 29 December 2021) proved to be significant.

[5] With the financial distress on the 1st applicant in June 2020, the 1st applicant's group of companies required urgent deb