\n<\/p>\n
The judicial commissioner said he was of the view that the application by mm2 has been \u201cmade in good faith\u201d and there exists sufficient evidence of broad creditor support.<\/p>\n
Linkwasha said there were insufficient details, including how the claim that 28 per cent of the debt owed to creditors was computed.<\/p>\n
The judicial commissioner said these were not unfair questions, but added that to ask for full details at a preliminary stage could be seen as demanding the impossible.<\/p>\n
\u201cThe (most important reason for) a moratorium in cases such as these is often to create the breathing space necessary for such a scheme to be refined and crystallised, free from the immediate pressure of creditors at the company\u2019s neck,\u201d he said.\u00a0<\/p>\n
\u201cA moratorium is, in some ways, the quiet harbour in which a distressed enterprise can seek to steady itself, take stock, and chart a course towards a fair and workable restructuring.\u00a0<\/p>\n
\u201cIn that sense, it is invariably going to be the case that in many of these cases, any proposal that is expected to eventually be put before the creditors would still be in the process of being worked through.\u201d<\/p>\n
He said that although the proposal put forward by mm2 was \u201cclearly missing some aspects\u201d, as pointed out by Linkwasha, it was sufficiently detailed and \u201cprovided a fair insight\u201d into how a restructuring would be able to yield greater collective benefit to the creditors than if mm2 were to be wound up.<\/p>\n
The entertainment company has also provided sufficient evidence of creditor support, the judgment said.<\/p>\n
Linkwasha said the evidence of creditor support is \u201cpoor\u201d as only eight of the 20 largest unsecured creditors have come out to support the restructuring scheme.<\/p>\n
But Judicial Commissioner Faizal disagreed with Linkwasha, and said that while the numbers were \u201cnot overwhelmingly positive\u201d, they suggest that there is \u201csizeable support\u201d for a moratorium.<\/p>\n
\u201cIn my view, there is much by way of creditor support for one to remain positive about possible outcomes.\u00a0<\/p>\n
\u201cEven at this rather early stage, it would seem that creditors comprising over half of the unsecured debt have come out to explicitly support the request for a moratorium.<\/p>\n
\u201cJust as significantly, a fair number of these creditors have provided their support very recently only after the application had been filed.\u201d<\/p>\n
Linkwasha also asked the court for additional measures, including that mm2 provide updates on its negotiations with Hildrics, and that it provide more details to the creditors within two months.<\/p>\n
The judicial commissioner said that while these were \u201creasonable and entirely understandable requests\u201d, he did not grant these conditions as mm2 will in the coming weeks have to devote \u201csomewhat finite bandwidth\u201d to finalising the restructuring.<\/p>\n
\u201cIn my mind, it may be imprudent to expect them to concurrently expend disproportionate energy on micromanaging the flow of interim communications and to move away from the need to show immediate progress almost from the get-go.\u00a0<\/p>\n
\u201cTransparency is important, but so too is focus,\u201d he added.<\/p>\n
He said that an enterprise should be allowed the space to properly develop a full restructuring proposal.<\/p>\n
Mm2 said it was willing to meet Linkwasha’s conditions “half way”, in that it would provide updates to all creditors on its negotiations on a monthly basis, and it would furnish details of its proposal only within three months.<\/p>\n
The judicial commissioner said the appropriate timeline for the second measure is somewhere between what Linkwasha was asking for and what mm2 was counterproposing.<\/p>\n
The entertainment company was ordered to “flesh out” the details of the proposal by 4pm on Feb 27, 2026 \u2013 about two and a half months from Wednesday.<\/p>\n
\u00a0<\/p>\n<\/div>\n