KUALA LUMPUR (June 14): Sapura Energy Bhd and 22 of its wholly-owned subsidiaries have obtained a nine-month extension of the restraining order (RO) from the High Court against their creditors.
The companies are to update the court by Sept 28 on the progress of the proposed scheme of arrangement. Judicial Commissioner (JC) Adlin Abdul Majid granted the RO following proceedings conducted last Wednesday afternoon (June 8).
Initially, these companies were granted a three-month RO as applied under Section 368(1) of the Companies Act 2016 last March, which was slated to end on June 10.
Besides Sapura Energy, the other companies which have sought the extended RO are Sapura Marine Ventures Sdn Bhd, Sapura Geosurvey Sdn Bhd, Sapura Drilling Probadi Sdn Bhd, Sapura Subsea Services Sdn Bhd, Sapura Geosciences Sdn Bhd, Sapura Subsea Corporation, Sapura Engineering (Offshore) Sdn Bhd, Sarku Engineering Services Sdn Bhd, Sapura Technology Solutions Sdn Bhd, Sapura Fabrication Sdn Bhd, Sapura Engineering Sdn Bhd, Sapura Offshore Sdn Bhd, Sapura Petroleum Ventures Sdn Bhd, Sapura 1200 Ltd, Sapura Geotechnics Sdn Bhd, Sapura Pinewell Sdn Bhd, Sapura TMC Sdn Bhd, Sapura 3500 Ltd, Sapura Dana SPV Pte Ltd, Sapura Nautilus Sdn Bhd, Sapura 900 Pte Ltd and Sapura Drilling Pte Ltd — which are all wholly-owned units of Sapura Energy.
The companies filed for the RO and a scheme of arrangement in March this year, and they were represented by Saheran Suhendran.
On another note, in a Bursa Malaysia announcement by Sapura Energy, it was stated that MCF (multi-currency financing) financiers will, in the meantime, continue to be excluded from the application of the extended RO on the basis that the companies, which are obligors in relation to the MCF facilities, have entered into an agreement with a significant majority of the MCF financiers for, inter alia, a standstill on claims under the MCF facilities for a further period of six months up to Dec 10 this year.
Sapura Energy said it “is continuing to engage with the remaining minority MCF financiers with a view to agreeing a standstill with such MCF financiers in short order”.
The company added in its announcement that the applicants had updated the proposed scheme of arrangement based on new cash flow projections, and told the local bourse that it does not envisage the extended RO having any material or adverse financial and operational impact on the group.
Sapura Energy also announced that last Wednesday, JC Adlin also approved the terms of reference for an adjudicator and appointed Tan Sri Mohamad Ariff Md Yusof (a former Dewan Rakyat speaker) as the designated independent adjudicator to resolve any dispute arising out of adjudication of debts involving the companies in the scheme of arrangement.
The company further said that creditors of each applicant (Sapura Energy and its wholly-owned units) are required to submit respective proof of debt on or before June 30 this year as ordered by the High Court.
“Pursuant to such order, the chairman of the court-convened meetings of the creditors of the applicants, or the adjudicator (as the case may be), will be at liberty to rely on the internal records of the applicants when adjudicating any proof of debt, and to reject or accept any proof of debt submitted after June 30.
Earlier this month, Sapura Energy announced former Velesto Energy Bhd president Rohaizad Darus and Lim Fu Yen as directors of the Practice Note 17 or cash-strapped company, effective June 1.