Mohd Radzi Abdul Hamid J:

GROUNDS OF JUDGMENTINTRODUCTION

[1]This a decision on the Applicants’ application via Enclosure 1 for: -

(i)an order pursuant to Section 366(1)Companies Act 2016

(ii)a restraining order pursuant to Section 368(1)Companies Act 2016

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 1^st, 3^rd, 7^th and 9^th Applicants (“JM Application”) filed on 20.11.2023. There was opposition to the scheme by their creditors including secured creditors and it led to the withdrawal of that scheme on 5.4.2024.

[4]Enclosure 1 is the application is for leav