Now, the Courtroom of Enchantment dismissed Scomi Team Bhd’s appeal against the Higher Courtroom conclusion dismissing its judicial administration software.
As established out previously, the Higher Court had ruled on two details when dismissing the judicial management software of Scomi Team Bhd, remaining a stated firm.
Initial, the Large Court docket ruled that a listed corporation could not apply for judicial administration. The Higher Courtroom dominated that a listed firm would tumble within just the exclusion in section 403(b) of the CA 2016: “a firm which is subject matter to the Capital Markets and Products and services Act 2007“.
Next, in this situation, a secured creditor had exercised its correct of veto in part 409 of the CA 2016 to object to the judicial administration application. Scomi Team Bhd argued that the veto had to be interpreted narrowly and in which the phrase “secured creditor” had to even now be examine alongside one another with, primarily, a secured creditor who could appoint “a receiver or receiver and supervisor referred to in subparagraph 408(1)(b)(ii)“.
Subsequent to the Superior Courtroom final decision, Scomi Team Bhd experienced acquired a Court docket of Charm interim preservation get to primarily revive the judicial administration moratorium.
With today’s choice, the Court docket of Appeal, in its quick oral remarks, confirmed each results of the High Court docket. In particular, this appellate selection confirms that a detailed corporation cannot use for judicial administration. There are no created grounds of judgment however. I will update this article with a longer scenario commentary as soon as the created grounds are issued.
The Court docket of Attraction decision also means that the interim preservation get safeguarding Scomi Group Bhd would have now fallen absent.