In the recent decision of the Malaysian High Court in Re Top Builders Capital Bhd & Ors [2021] 10 MLJ 327 (“Top Builders“), Ong Chee Kwan JC examines the proof of debt exercise in a scheme of arrangement (“SOA“) and the guiding principles governing the granting of leave to proceed with legal proceedings against a financially distressed company that has obtained a restraining order (moratorium) pursuant to a SOA.
This Update provides a summary of the decision and highlights the procedure and approach for the assessment of the proofs of debt for voting in a scheme and sets out the test and considerations when granting leave to a creditor to proceed with its legal proceedings against a company with a restraining order.
For more information, click here to read the full Legal Update.
