PETALING JAYA: Scomi Group Bhd’s subsidiaries have applied for judicial management via a judicial management order from the Shah Alam High Court as part of its exercise to undergo a financial restructuring scheme.
The three subsidiaries are Scomi Engineering Bhd, Scomi Rail Bhd and Scomi Transit Project Brazil (Sao Paolo) Sdn Bhd.
Scomi said in a statement that the application for judicial management was made to serve the interest of its stakeholders with the objective of reviving the companies.
“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,” it said.
Judicial management is a corporate rescue mechanism pursuant to Companies Act, 2016 that provides a rehabilitation framework to give companies in financial distress an opportunity to be rehabilitated.
Companies undergoing such rehabilitative measures will have temporary shield against legal proceedings by third parties.