Ecobuilt Holdings Bhd said its wholly-owned subsidiary, Eko Bina Sdn Bhd, has voluntarily applied to the High Court of Malaya in Kuala Lumpur for a Judicial Management Order (JMO) as it faces financial difficulties and creditor claims.
Ecobuilt said the application forms part of the group’s ongoing efforts to address Eko Bina’s financial position and establish an orderly framework to manage and restructure its affairs, assets, liabilities and obligations to creditors.
Eko Bina’s financial difficulties follow the cessation of a previous Scheme of Arrangement involving the subsidiary.
The Ecobuilt board said it had considered the available options and believes judicial management could provide an appropriate framework to address Eko Bina’s financial position and creditor obligations while mitigating potential adverse effects on the wider group.
Despite the application, Ecobuilt said it does not expect the filing to have any material impact on the day-to-day operations of its remaining subsidiaries.
The company also clarified that Eko Bina is not a major subsidiary of Ecobuilt under the Main Market Listing Requirements as at Aug 13, the latest practicable date before the announcement.
However, Ecobuilt said it is currently unable to determine the financial impact or potential losses arising from the JMO application, as these will depend on the outcome of the judicial management process.
The application marks the latest restructuring measure by the group as it seeks to resolve Eko Bina’s financial obligations following the end of its previous debt restructuring arrangement.
