RENEUCO Bhd and six of its subsidiaries have applied to the High Court for a restraining order and proposed scheme of arrangement with creditors, as the financially distressed group moves to stabilise its operations and exit its Practice Note 17 (PN17) status.
The application, filed on May 20, aims to shield the group from legal actions—including winding-up petitions and litigation – for a period of three months.
The moratorium will provide Reneuco time to finalise a debt restructuring plan under Sections 366 and 368 of the Companies Act 2016.
Reneuco was classified as a PN17 issuer in February 2024 after its auditors issued a disclaimer of opinion on its FY2023 financial statements, citing significant uncertainties.
The proposed scheme of arrangement will need approval from at least 75% of the total value of creditors present and voting at a court-convened meeting.
Once approved, the plan will become binding on all scheme creditors.
Reneuco stressed that daily operations will continue as usual, and it does not expect material adverse financial or operational impact from the court order.
The group said it will engage with contractual counterparties to manage any potential risks arising from the restraining order. –TMR
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