KUALA LUMPUR (April 21) — Zelan Bhd has reached a major milestone in its financial recovery after obtaining unanimous approval from creditors for its proposed scheme of arrangement. At a court-convened meeting, 100% of creditors present and voting supported the plan, marking a critical step forward for the company.
Zelan, an engineering and construction group with projects spanning power plants, ports, airports, and high-rise developments across Malaysia and the Middle East, has been undergoing restructuring since late 2025. The company was classified under Bursa Malaysia’s PN17 list after facing impairment losses at its main operating subsidiary, signalling financial distress.
The approval was secured during a meeting held under Section 366 of the Companies Act 2016. Achieving full creditor support is particularly significant, as it reflects strong confidence in the company’s restructuring plan and improves its chances of recovery.
Following this milestone, Zelan will proceed to seek formal court approval to finalise the scheme. The company has indicated that further updates will be announced as the process progresses.
What I Learned
This case highlights how structured debt restructuring can help financially distressed companies regain stability. One key takeaway is that unanimous creditor approval is a strong indicator of trust in a company’s recovery strategy. It also shows the importance of legal frameworks, like schemes of arrangement, in giving companies time and structure to reorganise their finances.
I also learned that being classified under PN17 does not necessarily mean a company will fail. Instead, it can act as a turning point where firms take corrective action, negotiate with creditors, and work toward a sustainable recovery plan.
China