Companies with as little as RM10m debt issues can apply for CDRC's help from Sept 1

PETALING JAYA: The Corporate Debt Restructuring Committee (CDRC), under the auspice of Bank Negara Malaysia (BNM), is opening up its debt resolution services to companies with as little as RM10 million total outstanding debt, to encompass a wider group of small and medium businesses from Sept 1.
Companies currently qualify for debt resolution mediation for total outstanding debt of at least RM30 million.
"In particular, the revision will expand the services of the CDRC to cover mid-sized companies facing temporary operational challenges. This proactive measure will complement the existing dedicated remedial and recovery resources of financial institutions to assist viable borrowers, " it said in a statement today.
The CDRC was re-established in 2009 as a pre-emptive measure by BNM to provide a platform for viable corporate borrowers and their multiple financial creditors to work out feasible and market-driven debt resolutions through mediation without having to resort to lengthy and costly legal proceedings.
This mechanism aims to: (i) support balance sheet and cash flow restoration whilst avoiding premature failure of viable borrowers; (ii) improve the speed and value of debt recovery; and (iii) minimise potential losses to financial institutions, which in turn preserves the continuity of the domestic financial intermediation process and economic activity. All applications to CDRC are done on a voluntary basis.