KUALA LUMPUR: The High Court of Malaya in Penang has granted a restraining order in favour of Ivory Properties Group Bhd, halting any further actions, including winding up, execution, and arbitration by its creditors.
This order, which spans three months from April 19, 2024, is intended to aid Ivory Gleneary Sdn Bhd (IGSB), a wholly-owned subsidiary, and its creditors in crafting a proposed scheme of arrangement.
This extension provides Ivory Properties the opportunity to present a regularisation plan, aiming to exit its Practice Note 17 (PN17) status.
Ivory Properties entered PN17 status in 2022 subsequent to a disclaimer of opinion on its audited financial statements for the fiscal year ending March 31, 2022, issued by external auditors, Messrs KPMG PLT.
During this period, the company incurred a net loss of RM79.51 million, with liabilities surpassing current assets by RM60.22 million. Moreover, cash and bank balances totaled RM1.67 million, coupled with a negative operating cash flow of RM8.9 million for FY2022.
KPMG underscored Ivory Properties' failure to meet interest and principal payments amounting to RM1.98 million for specific loans and borrowings, resulting in an outstanding sum of RM49.73 million.
On April 19, 2024, the court directed the issuance of a restraining order to facilitate a court-convened meeting between Ivory Properties and its creditors, aimed at deliberating and potentially sanctioning the proposed scheme of arrangement.
Furthermore, an insolvency practitioner was appointed to oversee the meeting and assess the viability of the proposed scheme, with an obligation to report the findings to the court.