Eligibility Criteria for Companies to Apply to the Corporate Debt Restructuring CommitteeRef No : 30 Aug 2017 Embargo : For immediate release
The Corporate Debt Restructuring Committee (CDRC) is pleased to announce the revision of the eligibility criteria for admissions effective 1st September 2017. More specifically, the minimum total outstanding debt threshold will be revised from RM30 million to RM10 million.
The revision to the admission criteria aims to enable a wider group of companies with viable business operations to apply to the CDRC for assistance to resolve their debt obligations. In particular, the revision will expand the services of the CDRC to cover mid-sized companies facing temporary operational challenges. This proactive measure will complement the existing dedicated remedial and recovery resources of financial institutions to assist viable borrowers.
The CDRC was re-established in 2009 as a pre-emptive measure by Bank Negara Malaysia to provide a platform for viable corporate borrowers and their multiple financial creditors to work out feasible and market-driven debt resolutions through mediation without having to resort to lengthy and costly legal proceedings. This mechanism aims to: (i) support balance sheet and cash flow restoration whilst avoiding premature failure of viable borrowers; (ii) improve the speed and value of debt recovery; and (iii) minimise potential losses to financial institutions, which in turn preserves the continuity of the domestic financial intermediation process and economic activity. All applications to CDRC are done on a voluntary basis.
For further information and clarification, please contact Encik Mevin Nevis at email@example.com or 03-22650878.
29 August 2017
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