The ruling highlighted the potential for a group of different lease creditors to be grouped together to vote on a scheme of arrangement or restructuring plan proposed by a tenant company and which could have the effect that the landlords are forced to accept revised lease arrangements on less favourable terms.
The High Court case
Malaysian Aviation Group Bhd (MAG) is undertaking a RM16 billion (2.85bn) debt restructuring following a period of business decline. MAG has been in active discussions with key stakeholders over the last six months, aviation being one of the most severely impacted sectors during the Covid-19 pandemic. Part of the restructuring is being implemented by a scheme of arrangement proposed by MAGs subsidiary, MAB Leas…
Read the full article at: https://www.pinsentmasons.com/out-law/analysis/ruling-shows-potential-landlords-lose-tenant-restructurings
