8 September 2021

Please click HERE for the Mandarin version of the deal update.

David Lee from our Corporate/Mergers & Acquisitions Practice Group and Farah Shuhadah Razali as well as Muneeba Ubaidi Hishamudin from our Litigation Practice Group worked together in advising and representing Cortez Subsea Sdn. Bhd. (“Cortez”) in its bid to overcome its debt issues with a more structured way forward.

In this case, Cortez opted to apply for a Judicial Management Order (“JMO”) which is one of the latest Corporate Rescue Mechanism made available for companies in distress as an alternative to winding up.

In granting the JMO, the High Court had notably adopted the current judicial trend in requiring parties to amongst others, exhibit a copy of the draft proposal for Judicial Management despite there being no express statutory requirement for the same as well as allowing any creditors to be admitted as Interveners despite the fact that the statute provides that only secured creditors or creditors who have been appointed or is entitled to appoint a receiver or receiver and manager ought to have locus to appear and/or to intervene in the proceedings.

The JMO will be in effect until 02.03.2022 during which time, the appointed Judicial Manager will work together with the company with a view to rehabilitate the company so that it may continue to operate as a going concern beyond the Judicial Management period.

This is yet another “responding to current market needs” services undertaken by Zul Rafique & Partners’ Corporate/Mergers & Acquisitions Practice Group and Litigation Practice Group.

For more insight into this area of law, please contact our Partners in the respective practice groups:

P Jayasingam
Wong Keat Ching
Thavaselvi Pararajasingam
Idza Hajar Ahmad Idzam
Farah Shuhadah Razali
Bailey Leong Pui Yee

Corporate/Mergers & Acquisitions:
Jerry Ong Kok Wah
Cathryn F L Chay
David Lee Lai Huat

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