[1]The appeal arises from the decision of the High Court (affirmed by the Court of Appeal) which dismissed the application by the appellant for sanction of a scheme of arrangement pursuant to section 366Companies Act 2016

[2]The appellant was granted leave to appeal to the Federal Court premised upon the following 10 questions of law which are categorised into the various 3 headings:

A.Related Creditors and Classification of Creditors

a)Whether the votes of related-party creditors are to be treated differently from the votes of other creditors in the same class in a scheme of arrangement.

b)If the answer to 1 is yes, whether the votes of related-party creditors in a scheme of arrangement should be discounted or not be counted altogether.

c)Whether the issue on proper classification of creditors should be determined at the Court leave stage (following the English Court of Appeal decision in Re Hawk Insurance Co Ltd [2001] 2 BCLC 480 and AirAsia X Bhd v BOC Aviation Ltd & Ors [2021] 10 MLJ 942Court scheme sanction stage (following the Hong Kong Court of Final Appeal case of Re UDL Holdings Ltd [2002] 1 HKC 172).

d)Whether the Court at the scheme sanction stage should be slow to depart