PUTRAJAYA (May 28): The Court of Appeal has granted a subsidiary of Singapore-based Hatten Land Ltd, MDSA Resources Sdn Bhd, an interim protection order to restrain its creditors from taking action against it.
The court granted MDSA Resources the interim order yesterday pending the hearing of the company's appeal against the High Court's decision rejecting the sanction of the company's scheme of arrangement with its creditors.
The bench, led by Justice Datuk Lee Swee Seng, earlier heard the application for the interim order by counsel Lee Shih from Lim Chee Wee Partnership for MDSA Resources. The other members of the bench are Justices Datuk Lee Heng Chong and Datuk Hashim Hamzah.
Hatten Land announced in July last year that MDSA Resources and another subsidiary, MDSA Ventures Sdn Bhd, would be restructured as part of its initiatives to strengthen the resiliency of the group's business following the impact of the Covid-19 outbreak.
The move is aimed at strengthening the group's balance sheet, and will see the two companies restructure their legacy contractual obligations to achieve a more sustainable capital structure.
At the meeting of the creditors for the scheme arrangement, 90.4% of the total value of the scheme creditors present and voting in person or by proxy voted in favour of the proposed scheme of arrangement.
However, the High Court later dismissed MDSA Resources' application for sanction of the scheme of arrangement.
MDSA Ventures had earlier this year successfully completed its scheme of arrangement with its creditors.
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