KUALA LUMPUR: Sapura Energy Bhd said the High Court of Malaya has granted the company and its 22 wholly-owned subsidiaries an extension of nine months from June 11, 2023, to March 10, 2024, for the Convening and Restraining Orders for its proposed debt restructuring.
The Orders, which had initially been granted by the Court on March 8, 2023 pursuant to Sections 366 and 368 of the Companies Act, were set to expire on June 11, 2023.
It said the Orders will enable each of the companies to summon meetings with its creditors to consider and approve a proposed scheme of arrangement and compromise as part of the company’s group-wide debt restructuring plan.
The Restraining Orders will also assist the companies in engaging with creditors without being disrupted by the threat of litigation that could impact their operations, the oil and gas services provider said in a statement today.
It added that the extension is necessary for the companies to finalise the proposed schemes with its financiers and other creditors, following significant progress in negotiations to resolve their unsustainable debt and overdue payables.
Once the proposed schemes are in place, Sapura Energy and its subsidiaries will work towards the next milestone, namely the court-convened meetings, which are envisaged to be held by the end of October 2023, barring any unforeseen circumstances.
"Whilst we acknowledge the lengthy negotiation process due to the sheer complexity and size of the restructuring, we are quite confident that we are now approaching the last few milestones
of this journey," Sapura Energy group chief executive officer Datuk Mohd Anuar Taib said.
"Our commitment remains - we are determined to protect the value of all our stakeholders in the oil and gas ecosystem,” he added.
Sapura Energy's proposed restructuring schemes will include a potential financial investment from a white knight of approximately RM1.8 billion.
The company has appointed MIDF Amanah Investment Bank as the principal adviser to help formulate a regularisation plan to be submitted to Bursa Malaysia in its bid to exit its PN17-status.
On behalf of Sapura Energy, MIDF Amanah has sought Bursa Malaysia’s approval for an extension of time to submit the proposed regularisation plan.
Sapura Energy said its financial performance has shown a marked improvement, recovering from an operating loss of RM2.2 billion in the previous financial year to an operating profit of RM751 million in the financial year 2023.
The company is determined to extend the turnaround and continue exploring opportunities in areas in which the group is most competitive in the Eastern and Western Hemispheres. - Bernama