Reference is made to the announcements dated 3 July 2020, 7 July 2020, 13 October 2020, 30 October 2020, 27 January 2021, 25 February 2021 and 30 March 2021, on the receipt of a Winding-up Petition ("Petition") by Boustead Naval Shipyard Sdn Bhd ("BNS" or "Applicant"), a major associate of the Company, and on the grant and extension of an ad interim restraining order in relation to BNS’s application pursuant to sections 366 and 368 of the Companies Act 2016 (“Act”).

The Board of Directors of Boustead Heavy Industries Corporation Berhad (“BHIC” or "the Company”) wishes to announce that on 2 June 2021, BNS has obtained from the High Court of Malaya at Kuala Lumpur the following Orders for a scheme of arrangement pursuant to sections 366, 367 and 368 of the Act for, among others:

(1) An Order pursuant to section 366(1) of the Act to summon meetings of the scheme creditors of the Applicant or any class of them for the purpose of considering and, if thought fit, approving the scheme of arrangement and compromise between the Applicant and the scheme creditors; 

(2) That a Restraining Order be granted pursuant to section 368(1) of the Act, whereby all proceedings and/or further proceedings and/or future proceedings in any action or proceedings against the Applicant and/or its assets be and is hereby forthwith restrained and stayed except by leave of Court, for a period of three months from the date of today’s Order;

(3) That Tan Sri Dato’ Wira Aziah binti Ali be approved to act as a director of the Applicant pursuant to section 368(2)(d) of the Act;

(4) That the Court shall appoint an approved liquidator to assess the viability of the scheme proposed for the compromise or arrangement and the approved liquidator appointed shall prepare a report pursuant to section 367(1) of the Act for submission to the Applicant, and this Report shall be tabled at the meeting of creditors held under section 366 of the Act; and 

(5) That parties have liberty to apply for any further orders and/or directions of the Order, including an extension of the Restraining Order after 3 months. 

The Orders granted by the High Court were obtained as part of BNS’s overall restructuring and rehabilitation plan by way of a proposed scheme of arrangement with its creditors. BNS has appointed Ernst & Young PLT as its financial advisors to assist in the proposed scheme of arrangement.

The Restraining Order is not envisaged to have any material financial and operational impact to BHIC. 

Further developments on the above matter will be announced to Bursa Malaysia Securities Berhad in due course.

The Board will make the relevant update announcement(s) in relation to the foregoing as and when there are material developments on the same. 

This announcement is dated 2 June 2021.