KUALA LUMPUR: Sapura Energy Bhd
and its 22 wholly owned subsidiaries (scheme companies) have been granted new convening and restraining orders by the High Court of Malaya today for a period of three months, commencing March 11, 2024.
The orders, sanctioned under the Companies Act 2016, will enable each of the scheme companies to summon meetings with creditors, to consider and approve a proposed scheme of arrangement and compromise as part of the company’s group-wide debt restructuring plan, Sapura Energy said in a statement.
“The restraining orders will assist the scheme companies to engage with creditors without being disrupted by the threat of litigation. The previous convening and restraining orders granted on March 8 (and extended on June 6, 2023) are set to expire on March 10,” it said.
Sapura Energy, in its application to the Court, conveyed that substantial progress have been achieved in the ongoing restructuring process.
It added that the lenders with multi-currency support have given the requisite approval-in-principle for the proposed restructuring scheme, while the claims from trade creditors through the proof of debt (POD) process have undergone a comprehensive review.
Its white knight has also reaffirmed its support for the restructuring. The orders will provide all parties the necessary time to conclude defined terms and conditions to finalise the proposed restructuring scheme.
Sapura Energy’s debt restructuring exercise aims to address its multi-currency financing of approximately RM10.8bil and outstanding payments to trade creditors amounting to about RM1.5bil.
"As previously announced, we appreciate the approval-in-principle from our financiers for the proposed restructuring scheme. This was a major point that will enable us to move ahead with the restructuring,” chairman Datuk Mohammad Azlan Abdullah said.
Meanwhile, Sapura Energy group chief executive officer Datuk Mohd Anuar Taib said: "Their backing is crucial in instilling confidence in our company’s strategic direction. We greatly value their support, which will ensure Sapura Energy’s sustainable future beyond this turnaround.”
“We are grateful to all our creditors for their patience and understanding throughout this very complex debt restructuring exercise. Despite the challenges, we have been consistent and focused in pursuing a resolution that is equitable and beneficial for all parties involved, particularly the small and medium Malaysian vendors within the energy industry ecosystem, " he added.
Sapura Energy is also concurrently working with its advisors to develop and submit a regularisation plan to address Sapura Energy’s status as company under Practice Note 17.
