Restructuring & Insolvency
What We Do
Our Restructuring and Insolvency practice advises corporate clients, financiers, creditors, and stakeholders on restructuring and reorganisation matters arising from financial stress, strategic realignment, or corporate change. We support clients in navigating restructuring exercises aimed at preserving value, improving operational efficiency, and addressing financial and commercial challenges.
Our experience includes advising on corporate and investment restructurings, business reorganisations, and restructuring exercises undertaken in connection with mergers and acquisitions or changes in capital structure. We combine restructuring insight with corporate, financing, and regulatory expertise to deliver practical solutions tailored to each situation. The practice focuses on providing clear, commercially grounded advice that supports informed decision‑making and positions clients for stability and longer‑term sustainability within Malaysia’s legal framework.
How We Can Assist You
We advise clients throughout restructuring and insolvency‑related processes, from early assessment and strategy formulation through documentation and implementation. Our work includes advising on restructuring options, negotiating and preparing restructuring and settlement documentation, and supporting creditor and stakeholder engagement.
We regularly act for both corporate clients and financiers, assisting in the management of distressed situations and corporate reorganisations, including matters involving Islamic finance structures where appropriate. Our integrated corporate, banking, and regulatory capabilities allow us to provide coordinated advice on complex financial and operational restructurings. Throughout each engagement, we focus on delivering practical, commercially aligned legal solutions that manage risk, preserve value, and facilitate orderly and effective restructuring outcomes.
FAQs
What insolvency procedures are available in Malaysia?
Insolvency procedures include liquidation, judicial management, and schemes of arrangement under the Companies Act 2016. These mechanisms provide options for winding up or restructuring financially distressed companies.
What is judicial management?
Judicial management is a court-supervised process that allows a financially distressed company to restructure its affairs under the control of a judicial manager. It aims to rehabilitate the company or achieve a better outcome for creditors than liquidation.
What is a scheme of arrangement?
A scheme of arrangement is a court-approved compromise between a company and its creditors or shareholders. It requires approval by a majority in value of creditors and court sanction to become binding.
What is liquidation?
Liquidation is the process of winding up a company’s affairs, realising its assets, and distributing proceeds to creditors. It may be voluntary or court-ordered, depending on the circumstances.
What triggers insolvency proceedings?
Insolvency proceedings are typically triggered when a company is unable to pay its debts as they fall due or when liabilities exceed assets. Creditors or the company itself may initiate proceedings.
What rights do secured creditors have?
Secured creditors generally have priority over unsecured creditors and may enforce their security independently of insolvency proceedings, subject to applicable legal restrictions and procedures.
What is corporate rescue?
Corporate rescue refers to restructuring mechanisms aimed at rehabilitating a distressed company and preserving its business operations, rather than proceeding directly to liquidation.
What is cross-border insolvency?
Cross-border insolvency involves insolvency proceedings affecting assets or creditors in multiple jurisdictions. It may require coordination between courts and recognition of foreign proceedings.
What is the role of insolvency practitioners?
Insolvency practitioners, such as liquidators and judicial managers, are responsible for administering insolvency processes, managing assets, and ensuring compliance with legal requirements.
How are insolvency disputes resolved?
Disputes arising in insolvency proceedings are typically resolved through court processes, although negotiated settlements may also occur depending on the circumstances.
Why We Stand Out
Quality
Personalized service from a focused team of lawyers, capable of handling complex, high-value transactions. Agile and client-focused, offering premium expertise without the bureaucracy of larger firms.
Experience
Extensive experience engaging with government-linked companies (GLCs), public-listed companies (PLCs), and private corporations across diverse industries.
Strong capability in handling compliance-heavy projects, corporate governance, and large-scale infrastructure or financing transactions.
Global
Active involvement in LAWorld, a non-exclusive international legal network of nearly 70 independent mid-sized law firms across 100 cities worldwide.
This membership gives MRCO clients instant access to vetted foreign counsel, local expertise, and seamless support for cross-border transactions and disputes.
Digital
MRCO operates as a digitally forward firm, utilizing modern cloud tools and cutting-edge hardware and software. Its meeting rooms feature the latest meeting tools to ensure seamless connectivity, reflecting the absolute commitment to legal innovation in Malaysia today.
Sustainable
MRCO is an ESG-driven law firm, embedding sustainability principles into its daily operations and legal advice.
Actively developing ESG clauses across multiple practice areas and guiding clients toward sustainable business practices aligned with global standards.