Court of Appeal Rules Against Scomi Group Judicial Management Appeal

Today, the Court of Charm dismissed Scomi Team Bhd’s attraction versus the Higher Court docket selection dismissing its judicial administration software.

As set out before, the Substantial Court docket experienced ruled on two details when dismissing the judicial management application of Scomi Team Bhd, remaining a shown corporation.

Initial, the Large Courtroom dominated that a shown company could not implement for judicial management. The Superior Courtroom ruled that a mentioned company would fall in just the exclusion in part 403(b) of the CA 2016: “a corporation which is matter to the Capital Markets and Solutions Act 2007“.

Second, in this case, a secured creditor experienced exercised its suitable of veto in section 409 of the CA 2016 to object to the judicial management software. Scomi Team Bhd argued that the veto had to be interpreted narrowly and where the phrase “secured creditor” had to still be examine with each other with, basically, a secured creditor who could appoint “a receiver or receiver and manager referred to in subparagraph 408(1)(b)(ii)“.

Subsequent to the Substantial Courtroom choice, Scomi Team Bhd experienced acquired a Court docket of Appeal interim preservation get to basically revive the judicial management moratorium.

With today’s choice, the Court docket of Charm, in its short oral reviews, verified both of those results of the Significant Courtroom. In certain, this appellate conclusion confirms that a listed firm can’t apply for judicial management. There are no prepared grounds of judgment nevertheless. I will update this publish with a lengthier case commentary the moment the published grounds are issued.

The Courtroom of Attraction decision also indicates that the interim preservation get defending Scomi Group Bhd would have now fallen absent.

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