Restructuring galore

THE Asian financial crisis in 1997-98 had wreaked havoc on Asian currencies and equities, including Malaysia. With both financial and corporate sectors in distress, banks had to be recapitalised and kept liquid by removing non-performing loans, while corporates underwent restructuring.

Locally, Danaharta and the Corporate Debt Restructuring Committee (CDRC) were created by the government to rescue and restructure several companies, which owned assets considered to be strategic.