QUESTION 3. Suzy and Queen seek your opinion on how to rescue her company from going into liquidation and/or bankrupt because his private limited company SuzyQ Sdn. Bhd. is in a very bad financial state and on the verge of liquidation. SuzyQ Sdn. Bhd. is the company producing well known foods and beverages in Malaysia. Suzy and Queen are shareholders and directors of the company. The main reason for this unfortunate event was due to the company's main factory cooling and air-conditioner system broke down and caused their product quality to drop and some of the product started to deteriorate badly in their taste and quality to the state of not edible. This situation rendered numerous complain from their customers and some of their established customers began to cancel their orders and some even refused delivery. In their desire to ensure the survival of their company's business, Suzy and Queen made an effort to repair the cooling and air-conditioner system, but was told by the repairman to replace the system with the new system since their damaged system was an old model and beyond repairs. Suzy and Queen then consulted King, a factory and an air- conditioner system supplier and he recommended that they purchase a new industrial state of the art system that was suitable for her factory at a price of RM7,000,000-00 inclusive of installations. And the installation process until full operation will take four (4) weeks to complete. However, the company's financial standings cannot afford to wait for four (4) weeks without production. Advise Suzy and Queen on the followings:-. 1. method of corporate rescue mechanism (if any) available under the Malaysian Companies Act 2016. (20 marks) 2. One (1) advantage of those method of corporate rescue mechanisms to the creditor and the company. (5 marks) QUESTION 3. Suzy and Queen seek your opinion on how to rescue her company from going into liquidation and/or bankrupt because his private limited company SuzyQ Sdn. Bhd. is in a very bad financial state and on the verge of liquidation. SuzyQ Sdn. Bhd. is the company producing well known foods and beverages in Malaysia. Suzy and Queen are shareholders and directors of the company. The main reason for this unfortunate event was due to the company's main factory cooling and air-conditioner system broke down and caused their product quality to drop and some of the product started to deteriorate badly in their taste and quality to the state of not edible. This situation rendered numerous complain from their customers and some of their established customers began to cancel their orders and some even refused delivery. In their desire to ensure the survival of their company's business, Suzy and Queen made an effort to repair the cooling and air-conditioner system, but was told by the repairman to replace the system with the new system since their damaged system was an old model and beyond repairs. Suzy and Queen then consulted King, a factory and an air- conditioner system supplier and he recommended that they purchase a new industrial state of the art system that was suitable for her factory at a price of RM7,000,000-00 inclusive of installations. And the installation process until full operation will take four (4) weeks to complete. However, the company's financial standings cannot afford to wait for four (4) weeks without production. Advise Suzy and Queen on the followings:-. 1. method of corporate rescue mechanism (if any) available under the Malaysian Companies Act 2016. (20 marks) 2. One (1) advantage of those method of corporate rescue mechanisms to the creditor and the company
