Sapura Energy Bhd, a Practice Note 17 (PN17) company, has been granted an extension of its standstill period against legal proceedings by its multi-currency financing (MCF) financiers. The extension, provided by the Corporate Debt Restructuring Committee (CDRC) under Bank Negara Malaysia (BNM), extends until March 10, 2024.
Heading: CDRC’s Decision Based on Restructuring Progress
The extension was granted by CDRC based on Sapura Energy’s progress in its proposed restructuring scheme. Additionally, the CDRC considered the High Court’s extension of restraining orders against Sapura Energy’s creditors until March 10, 2024.
Heading: Continued Adherence to Standstill
MCF financiers are required to continue observing the informal standstill, refraining from initiating any legal proceedings or recovery actions against Sapura Energy or its group of companies, in accordance with BNM’s CDRC participants code of conduct.
Heading: Debt Restructuring Negotiations
Sapura Energy is actively engaged in debt restructuring negotiations with its creditors, who are owed RM10.3 billion, along with additional debt to vendors totaling RM5.3 billion. The group had initially sought an extension of its standstill until September 9, which was granted by CDRC in February.
Heading: CDRC’s Role in Corporate Debt Resolution
CDRC, established as a pre-emptive measure during the 1997 Asian financial crisis, serves as a platform for corporate borrowers and creditors to collaboratively develop feasible debt resolutions, avoiding legal proceedings. It has a successful history of resolving cases and accelerating economic recovery.
Heading: Sapura Energy’s Market Performance
Sapura Energy’s shares concluded slightly lower at 5.5 sen, resulting in a market capitalization of RM878.9 million.