Sapura Energy, Subsidiaries Gets 9-Month Extension To Convening And Restraining Order

The High Court (Commercial division) on Tuesday (June 6) granted a nine-month extension to a convening and restraining order (RO) previously granted to Sapura Energy Bhd and its 22 subsidiaries.

Judge Atan Mustaffa Yussof Ahmad granted the extension on Tuesday afternoon following a hearing. As such, the nine-month extension will begin from June 11.

Sapura Energy Berhad and 22 of its wholly owned subsidiaries (Scheme Companies) obtained new orders from the Court on March 9, pursuant to sections 366 and 368 of the Companies Act 2016, to summon meetings of each of their respective scheme creditors and to restrain legal actions or proceedings from being commenced or continued against any of the Entities for a period of 3 months, commencing from 11 March 2023 (New Convening and Restraining Orders).

The previous convening and restraining orders of the Court granted on 10 March 2022 (and extended on 8 June 2022) are set to expire on 10 March 2023.

The new Restraining Order will have the effect of restraining legal proceedings against the Scheme Companies, enabling them to engage with creditors in their debt restructuring efforts without being distracted by threat of legal proceedings.

The High Court’s decision also included the effective appointment of existing Sapura Energy independent non-executive director Mr Lim Fu Yen as the majority creditors’ nominated director in the boards of Sapura Energy and the 22 subsidiaries, replacing Cosimo Borrelli, whose term of appointment under the previous court orders expires on 10 March 2023.The companies filed an ex-parte application (with respect to the interests of one side) in March where, among others, they sought the RO, and court order to hold the court-convened meetings.

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