PESTECH INTERNATIONAL BERHAD

PESTECH INTERNATIONAL BERHAD

The court sanctioned the pre-pack under section 369C because the applicant provided sufficient disclosure to sophisticated scheme creditors, properly classified the unsecured working capital lenders as one class, achieved the statutory majority by notional ballot (counting only ballots returned), appointed an insolvency practitioner whose reports confirmed viability and non-prejudice to excluded creditors, and the scheme met the modified Buckley fairness requirements; therefore sanction was justified.

Citation
WA-24NCC(SOA)-1-01/2025 (Mahkamah Tinggi)
Parties
Applicant: PESTECH INTERNATIONAL BERHAD
Court
SOA
Jurisdiction
Malaysia
Judgment Date
28 April 2025
Case Number
WA-24NCC(SOA)-1-01/2025 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (sanction Under Section 369 C, Companies Act 2016) / Sanction Application (hearing Concluded; Sanction Granted)
Outcome
Order sanctioning the pre-pack scheme granted
Legal Topics
Scheme of Arrangement, Pre Packaged Scheme, Sanction of Schemes, Disclosure Obligations, Classification of Creditors, Statutory Majority Voting, Insolvency Practitioner Appointment, Protection of Non Scheme Creditors, Statutory Interpretation
Source Language
Malay/English
Company Law Insolvency Law Restructuring Commercial Law Scheme of Arrangement Pre Packaged Scheme Sanction of Schemes Disclosure Obligations +5 more

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Parties

PESTECH INTERNATIONAL BERHAD

Applicant

Procedural Posture

Originating Summons (sanction Under Section 369 C, Companies Act 2016) / Sanction Application (hearing Concluded; Sanction Granted)

Legal Issues

  1. 1 Whether disclosure to scheme creditors satisfied section 369C(3)(a)
  2. 2 Whether proper classification of creditors was made for notional voting
  3. 3 Whether the statutory majority was validly calculated by ballot in lieu of a meeting

Ratio Decidendi

The court sanctioned the pre-pack under section 369C because the applicant provided sufficient disclosure to sophisticated scheme creditors, properly classified the unsecured working capital lenders as one class, achieved the statutory majority by notional ballot (counting only ballots returned), appointed an insolvency practitioner whose reports confirmed viability and non-prejudice to excluded creditors, and the scheme met the modified Buckley fairness requirements; therefore sanction was justified.

Court Disposition

Order sanctioning the pre-pack scheme granted

Orders

  • Order sanctioning the Pestech Pre-Pack scheme under section 369C Companies Act 2016 granted
  • Insolvency practitioner Alex Chiang of Rodgers Reidy & Co appointed (appointment made 3.3.2025)