Sapura Energy Bhd has received written confirmation from the Corporate Debt Restructuring Committee (CDRC) that at least 75% of the financiers of its approximately RM10.3 billion in multi-currency financing facilities (MCF Financiers) have provided the requisite approval-in-principle for a proposed debt restructuring scheme (PRS).
In a statement, company said the confirmation is a positive development for Sapura Energy’s Reset plan, which includes efforts to address its unsustainable level of debt and amounts owed to trade creditors.
“(This) reflects the company’s commitment to formulating a fair and equitable solution for all its stakeholders, particularly Malaysian vendors who are small and medium enterprises.
The exercise involves approximately RM1.5 billion in claims from vendors,” it said today (Dec 13).
Since September last year, Sapura Energy and the MCF Financiers have been engaged in CDRC-mediated negotiations to reach an accord on the PRS.
The approval-in-principle for the PRS paves the way for court-convened meetings with the relevant classes of creditors of Sapura Energy and its relevant subsidiaries.
Its group chief executive officer Datuk Mohd Anuar Taib said the board and higher management extend its appreciation to the members of the CDRC for their invaluable guidance and professionalism during the mediation process.
“We are also grateful to the MCF Financiers for their continued support for Sapura Energy. We also wish to record our special acknowledgment to our advisors and advisors to the MCF Financiers. Their collaboration, strategic insights, and commitment were instrumental in achieving this,” he said.
The advisors mentioned include PricewaterhouseCoopers Advisory Services Sdn Bhd, Sage 3 Sdn Bhd, Saheran Suhendran, Rahmat Lim & Partners, Kirkland & Ellis, Malaysian Industrial Development Finance Berhad (MIDF), and Albar & Partners
Advisors to the MCF Financiers include Kroll, Wong & Partners and Mayer Brown.
Anuar said the company and its advisors will continue working with the MCF Financiers and the CDRC to achieve successful closure of this debt restructuring.
“With the approval-in-principle, we are quite confident that we are now approaching the last few milestones of this journey.
“This is indeed a positive step towards regularising our financial position, ultimately helping Sapura Energy exit from its status as a Practice Note 17 company,” Anuar added.
He also acknowledged the company’s s clients and vendors who had maintained their confidence in the company throughout this challenging period.
“Given the hurdles we faced, it’s understandable that not everyone could give us their backing. Hence, we are immensely grateful to the valued partners who have consistently demonstrated their unwavering support.
“We genuinely appreciate your trust, and we assure you of our continued efforts to deliver on promises and strengthen collaborations,” Anuar added.
