In a statement today, the Practice Note 17 (PN17) classified company said the corporate debt restructuring committee (CDRC) gave a “written confirmation” on the matter.

It said that this marks “a significant milestone” in its reset plan, which includes efforts to address its unsustainable debt levels and amounts owed to trade creditors.

The oil and gas service provider said the exercise involves about RM1.5 billion in claims from vendors.

“With the approval-in-principle, we are quite confident that we are now approaching the last few milestones of this journey.

“This is indeed a positive step towards regularising our financial position, ultimately helping Sapura Energy to exit from its status as a PN17 company,” said group CEO Anuar Taib.

It also stated that the company and its advisers will continue working with the MCF financiers and the debt restructuring committee to achieve closure.

Sapura Energy and the MCF financiers have been engaged in negotiations mediated by the debt restructuring committee since September 2022.

“The approval-in-principle for the proposed debt restructuring scheme paves the way for court-convened meetings with its creditors,” it said.

At 4pm, Sapura Energy’s share price was unchanged at 4.5 sen, giving it a market capitalisation of RM719 million.