KUALA LUMPUR (Feb 27): Sapura Energy Bhd (KL:SPNRG) has secured creditors’ approval for its proposed debt restructuring scheme after 52 court-convened meetings, and the plan is now awaiting High Court sanction.

Creditors, including trade partners and financing institutions, “voted overwhelmingly in favour” at all the meetings held by Sapura Energy and its subsidiaries between Feb 21 and 27 under a High Court order, according to Thursday’s statement.

“We are very grateful for the support shown by all creditors towards Sapura Energy’s debt restructuring effort,” said Sapura Energy chief executive officer Muhammad Zamri Jusoh. “We believe we have offered creditors a fair and equitable resolution.”

The restructuring involves Sapura Energy and its 22 subsidiaries to address a RM10.8 billion multi-currency financing and RM1.5 billion in outstanding trade creditor payments.

Negotiations mediated by the Corporate Debt Restructuring Committee were crucial in securing an agreement between Sapura Energy and its financiers. Approvals-in-principle from financial institutions in December 2023 and January 2025 paved the way for the court-convened meetings.

The scheme will be binding once sanctioned by the High Court and lodged with the Companies Commission of Malaysia. Sapura Energy and its subsidiaries have instructed their solicitors to proceed with the application.

Under the restructuring scheme, preferred unsecured creditors will receive full cash payments within 90 days after the restructuring effective date, expected to be in August 2025, subject to the fulfilment of certain conditions.

Meanwhile, certain Malaysian oil and gas sector service firms classified as ecosystem creditors will have their claims settled using funds from a white knight investor.

For unsecured creditors, their claims will be settled through a combination of financial instruments, including debt, sustainable debts, redeemable convertible unsecured Islamic debt securities, and new ordinary shares. About 7% of the unsecured debt will be permanently waived.

Shares of Sapura Energy were unchanged at three sen on Thursday, giving it a market capitalisation of RM562.76 million.