KUALA LUMPUR (Nov 15): Practice Note 17 (PN17) company Barakah Offshore Petroleum Bhd (KL:BARAKAH) said it will need to reformulate its regularisation plan after receiving an adjudication sum of RM78.8 million and updates on tendering contracts.
In a bourse filing, Barakah said it had on Friday withdrawn the proposed regularisation plan submitted on Oct 30 to Bursa Malaysia Securities, and applied for an extension of time to submit a new plan.
Under the previous plan, Barakah proposed a capital reduction of RM195 million, a three-into-one share consolidation, and an issuance of 62.5 million new shares to executive chairman Datuk Seri Nik Hamdan Daud to raise RM7.5 million.
The adjudication award was made in September 2021 after Barakah’s wholly owned unit PBJV Group Sdn Bhd was successful in its adjudication claim against EnQuest Petroleum Production Malaysia Lt relating to offshore works secured under a five-year contract in 2018.
EnQuest was required to pay RM73.57 million, by January 2022, with an interest at a rate of 5% per year until full payment.
However, in January 2022 EnQuest filed the notice of arbitration against PBJV for alleged losses suffered by Enquest arising from the termination of PBJV as EnQuest’s contractor.
EnQuest’s attempt to appeal the verdict was dismissed at the Federal Court in mid-August this year.
On Oct 28, Barakah said it has entered into a preliminary agreement to sell its pipe-laying barge, Kota Laksamana 101, to Indonesian shipping offshore company PT Wintermar Rajawali Asia for a cash consideration of US$9.7 million (RM41.81 million).
The proceeds from the disposal were intended to be utilised solely for the partial repayment of the US$11.06 million sum owed to Export-Import Bank of Malaysia Bhd (EXIM Bank).
Barakah fell into PN17 status in March 2019 after defaulting on payments to EXIM Bank for the vessel.
The company's shares closed unchanged at five sen, giving it a market capitalisation of RM50.15 million.