Ecobuilt Holdings Berhad’s proposed debt restructuring has suffered a major setback after creditors of one of its key subsidiaries rejected a proposed Scheme of Arrangement, causing the entire restructuring exercise to lapse.
The construction group announced the outcome of the adjourned court-convened meetings held on Thursday involving its wholly owned subsidiaries, Eko Bina Sdn Bhd and Rexallent Construction Sdn Bhd.
The meetings were convened to allow scheme creditors to vote on the proposed Schemes of Arrangement, which form part of Ecobuilt’s broader restructuring efforts.
Creditors of Eko Bina voted overwhelmingly against the proposal.
Although five creditors voted in favour and four voted against, the proposal failed to secure the required majority in value, with creditors representing only RM535,823, or 3.34% of the total value of votes, supporting the scheme. Creditors holding claims worth RM15.52 million, representing 96.66% of the voting value, opposed the proposal.
As a result, the proposed Scheme of Arrangement for Eko Bina was rejected.
In contrast, creditors of Rexallent Construction approved its proposed scheme.
A total of 52 creditors voted in favour, representing claims of RM19.20 million, or 75.35% of the voting value, while 16 creditors holding claims worth RM6.28 million, equivalent to 24.65%, voted against the proposal.
Despite securing the necessary approval for Rexallent Construction, Ecobuilt said both restructuring schemes will not proceed because they were structured to be inter-conditional.
“The requisite majority in value for the Proposed Scheme of Arrangement A in respect of Eko Bina was not obtained. As the Proposed Schemes of Arrangement A and B are inter-conditional upon each other, both schemes will therefore not become effective,” the company said.
