AZRB obtains three-month restraining order while arranging a scheme with creditors

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AZRB three-month restraining order

Highlights

Ahmad Zaki Sdn Bhd obtained a three-month restraining order from the High Court, effective from 21 Oct 2026 to 20 Jan 2027, to arrange a scheme with creditors.
The company faces winding-up petitions involving RM9.41 million and received a public reprimand from Bursa Malaysia Securities for delays in disclosing this information.
As at end-June 2026, AZRB recorded current liabilities of RM1.42 billion against current assets of RM698.73 million and negative working capital of RM721.27 million.

This article was translated from the original. Read the original version by our correspondent here.

Details of the court order and restructuring process

The Edge Malaysia reported that Ahmad Zaki Resources Bhd said its wholly owned subsidiary, Ahmad Zaki Sdn Bhd, had obtained a restraining order from the High Court for the period from 21 Oct 2026 to 20 Jan 2027, according to a filing with Bursa Malaysia on Friday. The court also set 28 Dec for the hearing of Ahmad Zaki Sdn Bhd’s application for an order to convene a meeting.

The engineering and construction group said it did not expect the restraining order to have a material adverse effect on its financial position or operations. The company added that further announcements would be made from time to time.

According to the group’s earlier filing, Ahmad Zaki Sdn Bhd is not a major subsidiary of AZRB. The group applied for the restraining order in late August as it sought to formulate a proposed scheme of arrangement with its creditors.

Financial pressure and implications for the group

The move comes as the group faces several winding-up petitions, in addition to receiving a public reprimand from Bursa Malaysia Securities last month for delays in disclosing the petitions. Bursa said AZRB had failed to promptly disclose four winding-up petitions involving the group and its wholly owned subsidiaries.

The petitions, involving claims totalling approximately RM9.41 million, were announced between May and July this year, although AZRB had received them 10 to 50 days earlier. As at end-June 2026, AZRB had current liabilities of RM1.42 billion against current assets of RM698.73 million, resulting in negative working capital of RM721.27 million.

AZRB shares closed unchanged at 8.5 sen on Friday, giving the company a market capitalisation of RM52.8 million. The counter has fallen more than 46% since the start of this year.

In our previous article, Bina Puri Holdings Bhd outlined its operational and cash flow recovery measures after completing a court-supervised debt restructuring in September. We also reported on the company’s renewed focus on infrastructure projects in Sarawak, alongside a board reshuffle and a shift towards a recurring-income business model, including the acquisition of Enforture (Sarawak) Sdn Bhd.

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