Corporate Debt Restructuring Committee - Home
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The Corporate Debt Restructuring Committee (CDRC) is a pre-emptive measure by the Malaysian Government 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 current economic conditions and facing difficulties in servicing their debt obligations can seek assistance from 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 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 re-commencement of CDRC's operations, distressed corporate borrowers 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 in Malaysia. The operations of CDRC are governed by the CDRC Code of Conduct.

Companies seeking to resolve their debt obligations through CDRC must fulfill the following broad criteria:-

i. Aggregate indebtedness of RM10 million or more;
ii. At least 2 financial creditors;
iii. Not in Receivership or Liquidation, except for those where Receivers have been appointed only over certain specified assets and the Directors remain in control over the companies’ overall operations;
iv. Experiencing difficulties in servicing their debt obligations but may not have already defaulted, provided they meet criteria (i) & (ii).

OR

Any company listed on Main Market or ACE Market of Bursa Malaysia that has already been classified as a PN17 or GN3 company respectively;

Companies are expected to be viable as a going concern post-restructuring in all cases.

 

For further information on how to apply to CDRC, please click here. CDRC has the discretion to accept or reject cases that do not meet the broad eligibility criteria.