KUALA LUMPUR (May 21): Alam Maritim Resources Bhd and its wholly-owned subsidiary Alam Maritim (M) Sdn Bhd today secured the required court orders to facilitate the group's restructuring plan by way of a scheme of arrangement with its creditors.

High Court Judicial Commissioner Adlin Abdul Majid granted the orders via a virtual hearing.

The orders were granted pursuant to Section 366 of the Companies Act 2016, which is a statutory mechanism that provides relief for companies to propose a compromise with its creditors instead of being wound up.

In a stock exchange filing, Alam Maritim said the first order allows the group to summon meetings of its creditors for the purpose of considering and, if thought fit, approving the scheme of arrangement.

The second order gives Alam Maritim the liberty to fix a time, date and venue of the scheme meetings, within six months from today.

Lawyers Lee Shih and Pang Huey Lynn of Lim Chee Wee Partnership appeared for Alam Maritim in the court hearing.

According to Alam Maritim's latest balance sheet, the group's total borrowings as of Dec 31, 2020 stood at RM102.56 million, of which a significant bulk of RM99.03 million were short-term borrowings.