KUALA LUMPUR (Dec 20): Scomi Group Bhd's proposed scheme of arrangement with its creditors has received the High Court’s approval.

“At the hearing on Dec 19, 2022, the proposed scheme has been approved by the court and is now binding on the company and the scheme creditors in accordance with Sections 366(3) and 366(4) of the Companies Act 2016 (Order),” Scomi said.

A copy of the order is to be lodged with the Companies Commission of Malaysia, according to its filing with Bursa Malaysia.

The decision came after the majority of its creditors voted in favour of the proposed scheme at a court-convened meeting on Nov 15.

To recap, the High Court had in September granted leave to the company to call for the court-convened meeting in relation to the proposed scheme of arrangement and compromise between the company and its creditors.

Scomi fell into Practice Note 17 status in December 2019, after its shareholders’ equity spread slipped below 25% of its issued share capital and its equity dropped below RM40 million, based on its financial results for the quarter ended June 30, 2019.

The company has asked Bursa Securities for a further extension of time of six months (up to May 31, 2023) to submit its regularisation plan.