KUALA LUMPUR: Scomi Group Bhd expects its financial restructuring to give it opportunity to be revitalised and restored to profitability.
Scomi said the rehabilitation could potentially include reviving existing businesses in which the company had experience, as well as acquisition in related businesses to create sustainable cash flow.
On April 14, Scomi applied for judicial management (JM) from the High Court here as part of its exercise to undergo a financial restructuring in line with its rehabilitation efforts.
Judicial management is a corporate rescue mechanism pursuant to Companies Act, 2016 that provides a framework to give companies which are in financial distress an opportunity to be rehabilitated.
It will temporarily shield the companies from legal proceedings by third parties, while they are undergoing such measures.
"This application for JM Order by Scomi has been made to serve the interest of its stakeholders with the objective of rehabilitating the company.
"Currently the business liability of the company stands at about RM250 milliion," Scomi said.