Malaysia Case Law: Decisions & Judgments

Topic

Sanction hearing

Legal area

Court

4 Jul 2023

MDSA RESOURCES SDN BHD Adrian Sia Koon Leng

Citation

02(i)-65-07/2022(M) (Mahkamah Persekutuan)
Court

i
Case number

02(i)-65-07/2022(M) (Mahkamah Persekutuan)

The Federal Court held the unsecured related-party creditors and third‑party unsecured creditors constituted a single class because their legal rights against the company were similar; related‑party votes are not to be automatically discounted but may be discounted or disregarded in the court’s discretion at the sanction stage applying a but‑for causal test; classification should be decided at the leave/convening stage and the court should be slow to depart absent material change; adequacy of the explanatory statement is assessed pre-issuance and remedies for material non-disclosure include r…
13 Jan 2022

BGMC HOLDINGS BERHAD (Dahulunya dikenali sebagai BGMC Holidings Sdn Bhd) PENCELAH 1. ) LMM MARKETING SDN BHD 2. ) SM MEGABUMI SDN. BHD. 3. ) SM MEGABUMI SDN BHD 4. ) FULLOOP SDN. BHD. 5. ) YIK LOONG AIR-COND SDN. BHD. 6. ) HANSON BUILDING M

Citation

WA-24NCC-291-06/2021 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24NCC-291-06/2021 (Mahkamah Tinggi)

The court held that the statutory 75% threshold under s366 CA 2016 was exceeded; creditors were properly classified by similarity of legal rights so related-party creditors did not require separate classes; there was no evidence to discount related parties' votes; disclosures in the Explanatory Statement and Statement of Affairs were sufficient and not materially misleading; the scheme satisfied the bona fide and reasonableness tests (a reasonable businessman could approve it); accordingly the Court sanctioned the scheme and granted ancillary orders including as a condition that 43 retail lot…
2 Dec 2021

1. TOP BUILDERS CAPITAL BERHAD (Reg. No.: 201301043050 (1072872-D)) 2. IKHMAS JAYA SDN. BHD. (Reg. No.: 199201022513 (254017-H)) 3. IKHMAS EQUIPMENT SDN. BHD. (Reg. No.: 199901020860 (495760-W)) 1. SENG LONG CONSTRUCTION & ENGINEERING SDN.

Citation

WA-24NCC-608-12/2020 (No. 2) (Mahkamah Tinggi)
Court

No. 2
Case number

WA-24NCC-608-12/2020 (No. 2) (Mahkamah Tinggi)

The Court sanctioned the three schemes because it found statutory requirements complied with, creditors were properly classified and fairly represented, disclosure was sufficient for commercial decision making, the adjudication and appeal mechanisms for PODs were adequate, virtual meetings were acceptable given COVID constraints, and the schemes provided materially better returns than liquidation; related‑party and intercompany votes were not discounted on the facts, and targeted audit orders were imposed to resolve specific disclosure uncertainties (Damai 88 units).

Malaysia Case Law

MDSA RESOURCES SDN BHD Adrian Sia Koon Leng

BGMC HOLDINGS BERHAD (Dahulunya dikenali sebagai BGMC Holidings Sdn Bhd) PENCELAH 1. ) LMM MARKETING SDN BHD 2. ) SM MEGABUMI SDN. BHD. 3. ) SM MEGABUMI SDN BHD 4. ) FULLOOP SDN. BHD. 5. ) YIK LOONG AIR-COND SDN. BHD. 6. ) HANSON BUILDING M

1. TOP BUILDERS CAPITAL BERHAD (Reg. No.: 201301043050 (1072872-D)) 2. IKHMAS JAYA SDN. BHD. (Reg. No.: 199201022513 (254017-H)) 3. IKHMAS EQUIPMENT SDN. BHD. (Reg. No.: 199901020860 (495760-W)) 1. SENG LONG CONSTRUCTION & ENGINEERING SDN.