KUALA LUMPUR (Sept 7): Cash-strapped Sapura Energy Bhd has secured a six-month extension to its standstill period from its multi-currency financing (MCF) financiers under the Corporate Debt Restructuring Committee (CDRC) regime, pushing the end-date to March 10, 2024.

“In line with Bank Negara Malaysia’s CDRC Participant’s Code of Conduct, the MCF financiers are to continue to observe the informal standstill and withhold all legal proceedings, and/or any other recovery action initiated or intended against Sapura Energy and/or the admitted group of companies,” the oil and gas services provider said in a bourse filing on Thursday.

It noted that the CDRC’s decision to extend the standstill period past the coming Sept 9 expiry date was in consideration of the current progress of the group’s proposed restructuring schemes.

The former Sept 9 standstill period end-date was a result of an extension it was granted by the CDRC back in February this year.

The Practice Note 17 outfit said the nine-month extension of the restraining orders it received from the court against its creditors back in June was also a factor in the CDRC’s decision. The restraining orders also end on March 10 next year.

According to the filing, the admitted group of companies are Sapura Energy, and its wholly-owned units Sapura TMC Sdn Bhd, Sapura Fabrication Sdn Bhd, Sapura Offshore Sdn Bhd, Sapura Subsea Services Sdn Bhd, Sapura Pinewell Sdn Bhd, Sapura Technology Solutions Sdn Bhd, Sapura Drilling Pte Ltd, Sapura Drilling Probadi Sdn Bhd and Sapura Petroleum Ventures Sdn Bhd.

The CDRC accepted Sapura Energy’s application to mediate in the group’s debt restructuring negotiations with its MCF financiers back in September last year.

It was previously reported that the group owes RM10.3 billion to nine lenders grouped under financiers of its MCF facilities, and an additional RM5.3 billion to vendors.

Shares in Sapura Energy closed unchanged at six sen, giving the group a market capitalisation of RM878.85 million.