KUALA LUMPUR (Feb 9): Three subsidiaries of Scomi Energy Services Bhd are to remain under judicial management for a further six months from Feb 14.
The extension order was granted by Justice Datuk Azmi Ariffin at the Shah Alam High Court today.
The three subsidiaries are Scomi Oiltools Sdn Bhd, Scomi KMC Sdn Bhd and KMCOB Capital Bhd (KMCOB).
The court also granted an extension of time of 60 days for the judicial manager to send a statement of his proposal to the Registrar of Companies and to all creditors of the affected companies.
The order also allows the manager to lay the statement of proposal before a meeting of the affected companies’ creditors, Scomi Energy said in a filing with Bursa Malaysia.
Lawyers Lee Shih and Pang Huey Lynn from Messrs Lim Chee Wee Partnership appeared for the judicial manager in today’s court proceedings.
Judicial management is a debt restructuring method where an independent judicial manager is appointed to manage the affairs, business and property of a company under financial distress.
The company is further protected from third parties, in order that it be given a chance to rehabilitate.
Scomi Energy had announced in April last year that the group had applied for a judicial management order at the High Court.
During the judicial management period, no resolution can be passed or order made for the winding-up of Scomi Engineering and its subsidiaries.
On March 12 last year, KMCOB Capital had defaulted on a loan payment amounting to RM80.41 million, following which Hong Leong Investment Bank Bhd issued a notice to KMCOB, declaring an event of default.