Deloitte Malaysia leads successful turnaround of Leader Cable

Deloitte Malaysia (“Deloitte”) has led the successful restructuring of Leader Cable Industry Berhad (“Leader Cable”) in a first-of-its-kind transaction. With over 50 years in operation and annual turnover of US$100m, Leader Cable is a leading manufacturer and supplier of quality power and telecommunications wire and cables to industrial customers in over 40 countries worldwide.

Deloitte Malaysia Strategy, Risk & Transactions (SR&T) Partners, Khoo Siew Kiat and Eddie Goh were appointed as Liquidators of Leader Cable by the High Court of Kuala Lumpur, Malaysia in May 2024. The Liquidators continued the business operations and secured an investor to acquire the business and shares of Leader Cable. The investor and Liquidators obtained support from creditors for a Scheme of Arrangement to recapitalise Leader Cable allowing the company to exit liquidation.

The restructuring enabled Leader Cable to continue to serve Tenaga Nasional Berhad, Malaysia’s primary electricity generation enterprise, in the development of cable infrastructure across Peninsular Malaysia including high-voltage transmission and low-voltage distribution projects, whilst saving more than 300 local jobs and maximising returns to creditors.

“Leader Cable has a long history in Malaysia as one of the nation’s largest cable manufacturers. This landmark transaction sets a new precedent in Malaysia where a company in liquidation can be successfully restructured and be returned to going concern status. This outcome demonstrates the strength of the Deloitte restructuring team when it comes to achieving high value outcomes in complex special situations. We wish Leader Cable continued growth ahead under its new owner,” said Khoo Siew Kiat, SR&T Partner, Deloitte Malaysia.

Shearn Delamore acted as legal counsel to the Liquidators.

At Deloitte, restructuring services are performed by Strategy, Risk & Transactions. Deloitte SR&T professionals have the experience and capabilities to carry out integrated, end-to-end support and advisory on business transformation that includes restructuring, M&A, valuation modelling, cost optimisation, business design and transformation, infrastructure and real estate, and sustainability. Find out more here.