The company and 22 of its subsidiaries have been granted a three-month extension of an order restraining their creditors from starting legal proceedings.
The court had, on March 10 last year, granted Sapura Energy and its subsidiaries an extension of the same order from June 8, 2022. The order is set to expire tomorrow.
The new court order enables Sapura Energy and its subsidiaries to summon meetings of each of their creditors and to restrain them from commencing with legal proceedings for three months from this Saturday.
According to its last reported balance sheet, Sapura Energy had liabilities amounting to RM16.7 billion, which are due within 12 months, and another RM146.9 million due after 12 months.
In a statement issued to the media today, Sapura Energy said the new restraining order would enable them to engage with their creditors on debt restructuring efforts “without being distracted by legal proceedings”.
Sapura Energy non-executive director Lim Fu Yen will retain his position as the majority creditors’ nominated director on the board of Sapura Energy and its 22 subsidiaries, the statement said.
Lim replaces Cosimo Borrelli, whose term of appointment under the previous court order expires tomorrow.
Sapura Energy group CEO Anuar Taib said that while the company has to offer a fair deal to its financiers, it also has to ensure that its creditors, which include small and medium-sized enterprises, are not short-changed.
The statement said that in the past 12 months, Sapura Energy and its subsidiaries have made “significant progress” in its reset plan to restructure its debts and turn around its operations.
“Despite limited working capital and macroeconomic challenges, the group’s financial performance showed a marked improvement over the previous fiscal year,” it said.
The group has already won RM3.4 billion worth of contracts for the 2023 financial year (FY23), raising its order book to RM6.8 billion as of the third quarter of the financial year.
The statement said Sapura Energy has completed 45 projects for its clients in FY23 and 11 of its rigs are now under contract in Malaysia, Thailand, Brunei and West Africa.
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