Commencement of Operations of the Corporate Debt Restructuring CommitteeRef No : 23 Jul 2009 Embargo : For immediate release
KUALA LUMPUR -The Corporate Debt Restructuring Committee ("CDRC") is formed as a voluntary forum for the resolution of distressed debts of large corporations. In conjunction with its commencement of operations today, CDRC announced the appointment of its committee members and the eligibility criteria for admission. The following statement was released:
"As a pre-emptive measure, the Corporate Debt Restructuring Committee ("CDRC") has commenced its operations to provide a platform for corporate borrowers and their creditors to work out feasible debt resolutions without having to resort to legal proceedings. This initiative has been put in place to ensure that all avenues are made available to assist distressed corporations to resolve their debt obligations.
Companies affected by the current economic crisis and facing difficulties in servicing their debt obligations can seek assistance from the CDRC on a voluntary basis. CDRC's role is to mediate between the companies and their lenders in arriving at a viable debt restructuring arrangement.
CDRC proceedings will be governed by a Code of Conduct specifying the expected behaviour of all participants and the framework for arriving at a viable restructuring scheme. The Code of Conduct has been disseminated to financial institutions for feedback and is expected to be finalised by next week.
CDRC was first established during the 1998 financial crisis and was successful in resolving 57 cases with a total debt outstanding of RM45.8 billion, helping to accelerate the country's economic recovery.
With the commencement of operations of CDRC, distressed corporate borrowers now have an alternative platform to resolve debt obligations with their creditors in an effective and efficient manner. CDRC aims to help sustain economic activities in Malaysia and preserve employment by expediting debt restructuring of viable businesses.
Bank Negara Malaysia has appointed the following as members of the CDRC:
- YBhg. Dato' Sri Abdul Hamidy Abdul Hafiz (Chairman)
- YBhg. Dato' Mohammed Hussein
- YBhg. Dato' Muhammad bin Ibrahim
- YBhg. Datuk Ranjit Ajit Singh
- En. Abdul Kadir Kassim
- En. Ahmad Badri bin Mohd Zahir
- En. Nik Mohd Hasyudeen Yusoff
- En. Philip Tan Puay Koon
Companies seeking to resolve their debt obligations through CDRC must fulfill the following criteria:
- Debt obligations of at least RM100 million,
- At least 3 financial creditors (banks or Private Debt Securities),
- Not already in receivership or liquidation.
CDRC has the discretion to accept or reject cases that do not meet the broad eligibility criteria.
For further information on CDRC, please contact Mr Chan Huan Kiong or Pn Norbaizurah Abdul Jabar at 03-20359667 or via email at firstname.lastname@example.org
Corporate Debt Restructuring Committee
23 July 2009
© Bank Negara Malaysia, 2009. All rights reserved.