Top Builders Capital Bhd & Ors v Seng Long Construction & Engineering Sdn Bhd & Ors

LCWP acted for the successful scheme companies in this matter. Ernst & Young PLT acted as financial adviser.

The High Court  approved the schemes of arrangement of Top Builders Capital Bhd (formerly known as Ikhmas Jaya Group Bhd) and its subsidiaries with its creditors.

The decision dealt with several significant legal issues for schemes of arrangement. Some of the key issues were decided for the first time under Malaysia law: confirmation that the classification of creditors in a scheme is based on the similarity of legal rights; the threshold test and the different factors in assessing adequate disclosure in the Explanatory Statement for a scheme; the scheme chairman could extend the deadlines for submitting proof of debt forms for the scheme; scheme creditors do not have an automatic right to inspect the proof of debt forms of other scheme creditors; on whether to discount or disregard certain scheme creditors’ votes, especially where they are intercompany or related party creditors, there is no exact mathematical formula or absolute rule. 

The LCWP team was led by Lee Shih (Picture) and Pang Huey Lynn. 

     

    Involved fees earner: Shih Lee – LCWP; Lynn Pang – LCWP;

    Law Firms: LCWP;

    Clients: Top Builders Capital Bhd ;

    Sonia Carcano

    Author: Sonia Carcano