KUALA LUMPUR (March 7): Sapura Energy Bhd and its 22 wholly-owned subsidiaries have obtained new convening and restraining orders from the High Court for a period of three months effective March 11, allowing it to proceed with its debt restructuring.

In a filing with Bursa Malaysia on Thursday, the group said the orders, sanctioned under the Companies Act 2016, allow it to take critical steps in its debt restructuring plan through multi-currency financing of approximately RM10.8 billion and outstanding payments to trade creditors amounting to about RM1.5 billion.

Under these orders, Sapura Energy and its subsidiaries can convene meetings with creditors to discuss and approve a proposed scheme of arrangement and compromise without being disrupted by the threat of litigation.

Sapura Energy chairman Datuk Mohammad Azlan Abdullah expressed gratitude to the group's multi-currency financing lenders for continuing to support the company's restructuring efforts.

"As previously announced, we appreciate the Approval-in-Principle from our financiers for the PRS. This was a major point that will enable us to move ahead with the restructuring," Azlan added.

The group's chief executive officer Datuk Mohd Anuar Taib conveyed similar appreciation to Sapura Energy’s white knight, stating, "Their backing is crucial in instilling confidence in our company’s strategic direction.

“Despite the challenges, we have been consistent and focused in pursuing a resolution that is equitable and beneficial for all parties involved, particularly the small and medium Malaysian vendors within the energy industry ecosystem, " he added.

The group said its next restructuring journey includes completing the POD (Proof of Debt) assessment, finalising scheme papers and convening court-approved meetings with all creditors.

Simultaneously, Sapura Energy is collaborating with advisers to develop and submit a regularisation plan, addressing its Practice Note 17 status.

At market close on Thursday, shares in Sapura Energy settled unchanged at five sen, giving it a market capitalisation of RM918.8 million.