The approval was secured after 52 court-convened meetings, and the plan is now awaiting High Court sanction.
PETALING JAYA: Sapura Energy Bhd
, which is saddled with RM10.73bil of debt, has secured approval from its creditors for its proposed debt restructuring plan.
The approval was secured after 52 court-convened meetings, and the plan is now awaiting High Court sanction.
According to Sapura Energy, the creditors including the financing institutions providing the company’s multi-currency financing facilities (MCF Financiers), as well as trade creditors, voted overwhelmingly in all the court convened meetings.
It occured between Feb 21 and Feb 27, 2025.
Sapura Energy group chief executive officer Muhammad Zamri Jusoh said the group is grateful for the support shown by all creditors towards Sapura Energy’s debt restructuring effort.
“We believe we have offered creditors a fair and equitable resolution, as part of our commitment to preserve the Malaysian energy eco-system,” he said.
Sapura Energy and its 22 subsidiaries are undergoing a debt restructuring plan to address RM10.8bil in multi-currency financing and RM1.5bil in outstanding trade creditor payments.
Additionally, Sapura Energy and the majority of the MCF Financiers reached an accord through negotiations mediated by the Corporate Debt Restructuring Committee.
Approvals-in-principle from the MCF Financiers in December 2023 and January this year, enabled the court-convened meetings to take place.
The restructuring scheme will become legally binding once it receives sanction from the High Court and is lodged with the Companies Commission of Malaysia.
Sapura Energy and its subsidiaries have instructed their solicitors to proceed with the necessary filings. Under the restructuring plan, preferred unsecured creditors will receive full cash settlements within 90 days after the restructuring effective date, which is expected to fall in August 2025, subject to fulfilment of certain conditions precedent.
Meanwhile, for unsecured creditors, the admitted claims will be settled through debt, sustainable debts, redeemable convertible unsecured Islamic debt securities issuance of new ordinary shares.
Furthermore, around 7% of the debt will, however, be permanently and irrevocably waived.
