KUALA LUMPUR: Sapura Energy Bhd and its 22 wholly-owned subsidiaries have been granted new convening and restraining orders by the High Court today for three months from March 11.
The orders, sanctioned under the Companies Act 2016, will enable each of the companies to summon meetings with creditors, to consider and approve a proposed scheme of arrangement and compromise as part of Sapura Energy's group-wide debt restructuring plan.
"The restraining orders will assist the scheme companies to engage with creditors without being disrupted by the threat of litigation," it said.
The previous convening and restraining orders given on March 8 2023 and extended on June 6 2023 are set to expire on March 10.
In its application to the court, Sapura Energy said significant progress in the restructuring exercise had been made.
Its multi-currency lenders have provided the requisite approval-in-principle for the proposed restructuring scheme while claims from its trade creditors under the proof of debt (POD) process have been fully reviewed.
Sapura Energy's 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 finalize the proposed restructuring scheme," it said.
Sapura Energy's debt restructuring exercise aims to address its multi-currency financing of about RM10.8 billion and outstanding payments to trade creditors amounting to about RM1.5 billion.
Sapura Energy chairman Datuk Mohammad Azlan Abdullah as previously announced, it appreciated the approval-in-principle from its financiers for the restructuring scheme.
"This was a major point that will enable us to move ahead with the restructuring," he said.
Sapura Energy group chief executive officer Datuk Mohd Anuar Taib also conveyed similar appreciation to its white knight.
"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."
He acknowledged the considerable amount of time taken to progress the debt restructuring exercise.
"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.
The next milestones in the restructuring process include completing the POD assessment, finalising the scheme papers, and calling for court-convened meetings with all creditors.
Sapura Energy is also concurrently working with its advisors to develop and submit a regularisation plan to address its status as company under Practice Note 17.