CASSANDRA TOMAZZIOS
It is often argued that, under the Companies (Corporate Rescue Mechanism) Rules 2018, unsecured creditors are not allowed to oppose a judicial management application with only secured creditors allowed to appear and oppose a judicial management application. The High Court decision in Million Westlink Sdn Bhd v Maybank Investment Bank Berhad & Ors[1] specifically did not allow the intervention of a secured creditor in a judicial management application.
However, on 10 June 2020, the High Court in Goldpage Assets Sdn Bhd v Unique Mix Sdn Bhd (unreported) held that unsecured creditors may intervene and oppose a judicial management application. It was held that the Companies Act 2016 does not prevent any unsecured creditor from attempting to oppose a judicial management application and that there is no restrictive wording or provision that only applies to secured creditors. Based on this decision, it would now appear that unsecured creditors may apply to intervene in a judicial management application under the Rules of Court 2012 instead. Nevertheless, this certainly raises a conflict or contradiction between both cases on whether an unsecured creditor may intervene in judicial management applications.
By Cassandra Thomazios
