Case Background & Strategy

Main Content

Schemes of arrangement are powerful restructuring tools. NZSK Legal — led by Khoo Ai Theng — handles scheme proceedings from convening order through final sanction.

NZSK Legal’s Scheme Practice

• Convening order applications (section 366)
• Class composition analysis
• Explanatory statement preparation
• Class meeting management
• Sanction hearing advocacy
• Opposition to schemes (representing dissenting creditors/members)
• Cross-class cram-down considerations
• Coordination with Restraining Orders (judicial management)

Frequently Asked Questions (FAQ Schema)

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Q: What is a scheme of arrangement in Malaysia?

A: A court-sanctioned compromise between a company and its creditors or members under sections 366-368 CA 2016. Used for debt restructuring, equity reorganisation, and M&A. NZSK Legal handles scheme proceedings.

Q: How long does a scheme take?

A: Convening order application 4-8 weeks. Class meetings and sanction hearing 3-6 months. Total typically 4-9 months for straightforward schemes.

Q: Can creditors oppose a scheme?

A: Yes. Opposition can be raised at convening order stage and at sanction hearing. NZSK Legal handles both promotion and opposition of schemes.

Q: What is a convening order?

A: Court order under section 366 CA 2016 authorising the company to convene meetings of creditors/members to vote on a proposed scheme. NZSK Legal has obtained convening orders against significant creditor opposition.

Q: When should I use a scheme vs liquidation?A: Scheme preserves business and going-concern value. Liquidation realises assets in piecemeal sale. NZSK Legal advises on the optimal restructuring approach.