High Court: Priority of Wages Over Debenture Debts in Liquidation
In Perwaja Steel Sdn Bhd (in receivership) v. RHB Bank Berhad and 789 Others, the High Court has delivered its grounds of decision with a publication date of July 18, 2019.
The case involved a company undergoing liquidation with insufficient funds to pay both the employees' wages and the debenture holder's debts.
In accordance with the provisions of the debentures, a receiver and manager (R&M) was appointed after the winding up of Perwaja Steel in November 2017. The R&M tried to take necessary measures to get the Charged Lands ready to sell.