| On the 23rd of July 2009, Bank Negara Malaysia | | | | The PN17 company |
| announced the operations commencement of the | | | | In Malaysia, an Amended PN17 company means a |
| Corporate Debt Restructuring Committee (CDRC) in | | | | publicly listed company has negative net tangible asset |
| Malaysia, allowing corporate borrowers and creditors | | | | due to falling profits, or companies without a core |
| to work out debt resolutions without having the need | | | | business. These companies, who were once classified |
| to officiate legal proceedings. According to CDRC, this | | | | as a PN17 company, has submitted a plan to regularize |
| voluntary forum for large corporations who want to | | | | its condition pursuant to Section 212 of the Capital |
| negotiate obligations their distressed debts can do so in | | | | Market and Services Act 2007, and they are bound to |
| the forum - And they've succeeded in assisting 57 | | | | undertake a corporate regularization plan to |
| companies and RM45.8 billion in total outstanding debts. | | | | significantly change its business direction or policy and |
| Corporate debt structuring literally means a company, | | | | submit it to the Securities Commission Malaysia (SC) |
| facing financial burdens and is having difficulty in | | | | for approval. |
| meeting financial obligations. | | | | BNM (Bank Negara Malaysia) also announced its |
| The debt restructuring process will consist of | | | | appointment of members in the CDRC: |
| reorganizing the financially distressed company's | | | | 1. Yang Berbahagia Dato' Sri Abdul Hamidy Abdul |
| outstanding obligations to reduce financial burden (by | | | | Hafiz (Chairman) |
| debts). This could mean decreasing rates paid and | | | | 2. Yang Berbahagia Dato' Mohammed Hussein |
| giving more time for the company to pay back. At | | | | 3. Yang Berbahagia Dato' Muhammad bin Ibrahim |
| times, some of these debts may be revoked by its | | | | 4. Yang Berbahagia Datuk Ranjit Ajit Singh |
| creditors in exchange for an equity position in the | | | | 5. Mr. Abdul Kadir Kassim |
| company. | | | | 6. Mr. Ahmad Badri bin Mohd Zahir |
| Usually, when this financially distressed company poses | | | | 7. Mr. Nik Mohd Hasyudeen Yusoff |
| a high risk of going into bankruptcy, it can negotiate | | | | 8. Mr. Philip Tan Puay Koon |
| with its creditors to reduce these burdens and avoid | | | | And list of criteria for companies seeking to resolve |
| going bankrupt. Legally, it's possible for such a | | | | their debt through CDRC are: |
| company to acquire protection from creditors, with | | | | * Debt obligations of at least RM100 million, |
| hopes of renegotiating the terms on the debt | | | | * At least 3 financial creditors (banks or Private Debt |
| agreement - Which is also termed as an Amended | | | | Securities), |
| PN17 company in Malaysia. | | | | * Not already in receivership or liquidation. |