Three subsidiaries of Scomi Group Bhd have, on Dec 7, applied for Judicial Management via a Judicial Management Order (“JM Order”) from the High Court of Malaya, Shah Alam as part of its exercise to undergo a financial restructuring scheme to put it on a firm footing.

The three companies are Scomi Engineering Bhd (SEB, Scomi Rail Bhd (SRB) and Scomi Transit Project Brazil (Sao Paulo) Sdn Bhd (STPBSP).

Judicial Management is a Corporate Rescue Mechanism pursuant to Companies Act, 2016 that provides a rehabilitation framework to give companies which are in financial distress an opportunity to be rehabilitated.

It will temporarily shield the Companies from legal proceedings by third parties, while the Companies are undergoing such rehabilitative measures.

This application for JM Order by SEB, SRB and STPBSP has been made to serve the interest of its stakeholders with the objective of reviving the Companies.

Further, the Group believes this move will allow for rehabilitative steps to be considered with the aim of enhancing and strengthening the ability of the said Companies under Judicial Management to complete all its current projects and deliver on its contractual commitments to its clients.

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