Jerasia Files For JM Order, Seeks Moratorium From Creditors

Jerasia Berhad has filed for a Judicial Management Order as the company faces financial difficulty due to the impact of Covid-19 and slow down in demand for its apparels

The company adds that the retail and manufacturing segments and its various subsidiaries have been operating under adverse financial and operational conditions since the pandemic. In this regard, the prolonged imposition of the different phases of Movement Control Order by the Malaysian government beginning March 2020 resulted in the closure of its various retail stores and manufacturing facilities.

In addition, Jerasia said the global trade and consumer demands also experienced a sharp decline due to the COVID-19 pandemic. As a result, the group’s overall sales plummeted, and it was unable to generate sufficient revenue to meet its repayment requirements.

However, the Board considers there is a reasonable probability of rehabilitating the companies and preserving all or part of their businesses which will be of better interest for creditors instead of resorting to a winding-up if the JM Order Applications are allowed.

The purpose of the JM Order Applications is to get the involvement of an independent professional to facilitate the restructuring of Jerasia Group with the assistance of the BOD and Management and rehabilitate the companies by a combination of several approaches to regularise the financial condition, maximise the return to creditors and value to the shareholders and restructure the debts owed to their creditors and consequently be in a better position to address the repayment of their debts.

During the period beginning with the making of the JM Order Applications, no resolution will be passed or order made for the winding up of the Companies or steps taken to enforce any charge on or security over the companies’ property or to repossess any goods under any hire purchase agreement.

There will be no chattels leasing agreement or retention of title agreement, except with leave of the Court and subject to terms as the Court may impose, and no other proceedings or execution or other legal processes can be commenced or continued.

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