KUALA LUMPUR (Dec 2): The proposed scheme of arrangement between Prestariang Bhd’s unit Prestariang Skin Sdn Bhd (PSkin) and its creditors has received the High Court’s approval.

The sanction was granted by Judicial Commissioner Liza Chan Sow Keng during an e-review hearing today. Lawyer Nathalie Ker of Lim Chee Wee Partnership appeared for PSkin.

The decision comes after 100% of the scheme creditors approved the proposed scheme at a court convened meeting on Nov 9.

“The office copy of the High Court order will be lodged to the Companies Commission of Malaysia,” Prestariang said in a filing with Bursa Malaysia.

The court had on Sept 30 granted leave for PSkin to commence meetings with its creditors on its debt restructuring exercise.

The leave application was on the ground that PSkin could preserve its going concern while it carried on with negotiations and legal action to seek compensation from the federal government for the termination of the RM3.5 billion Sistem Kawalan Imigresen Nasional (SKIN) contract.

PSkin initiated the legal action to seek RM732.86 million in damages over the termination of the SKIN contract that was awarded in 2017.

The SKIN project involved a three-year build and deployment phase and a 12-year maintenance and technical operation phase.

Payment by the government to PSkin was to commence upon the full commissioning of the system with an average annual payment of RM294.7 million.

As at June 30, Prestariang’s total borrowings stood at RM65.54 million, of which RM26.9 million was revolving credit.

Prestariang’s share price closed seven sen or 14% higher at 57 sen today, giving the group a market capitalization of RM449.5 million.