This update is further to the earlier High Court decision in Re Scomi Group Bhd which held that public listed companies cannot apply for judicial management.
Another public listed company, Dolomite Corporation Berhad, has also failed in its judicial management application.
On 8 March 2022, Dolomite announced that the Shah Alam High Court had dismissed its judicial management application. Among others, the Court held that public listed companies are not allowed to apply for judicial management pursuant to section 403(b) of the Companies Act 2016 i.e. being a company subject to the Capital Markets and Services Act 2007.
On 8 April 2022, Dolomite filed an appeal to the Court of Appeal.
Similarly, Scomi Group Bhd’s appeal against the dismissal of its judicial management application is also continuing before the Court of Appeal. The matter is fixed for continued hearing on 25 April 2022.
It looks like the Court of Appeal will rule on this issue on whether public listed companies can be subject to a judicial management application or not.
In the meantime, Dolomite remains a PN17 company, being a company under financial distress. Dolomite also continues to face a the winding up petition filed by Maybank International Labuan Branch now fixed for hearing on 24 May 2022.