The orders granted in March this year were set to expire on June 11, 2023.
The oil and gas services provider said the orders will enable each of the companies to summon meetings with its creditors to consider and approve a proposed scheme of arrangement and compromise as part of its group-wide debt restructuring plan.
In a statement today, the group said the restraining orders will assist the companies in engaging creditors without being disrupted by the threat of litigation that could impact their operations.
The extension is necessary to finalise the proposed schemes with its financiers and other creditors, following significant progress in negotiations to resolve their debt.
Once the schemes are in place, Sapura Energy and its units will work towards the next milestone, namely the court-convened meetings envisaged to be held by end-October.
“Whilst we acknowledge the lengthy negotiation process due to the sheer complexity and size of the restructuring, we are confident we are now approaching the last few milestones of this journey,” Sapura Energy group CEO Anuar Taib said.
“We are determined to protect the value of all our stakeholders in the oil and gas ecosystem,” he added.
On Sept 1 last year, the Corporate Debt Restructuring Committee (CDRC) approved the group’s application for the committee’s assistance to mediate in its RM10.3 billion debt restructuring negotiations with the multi-currency financing (MCF) financiers. It owes another RM5.12 billion to its vendors.
Sapura Energy’s proposed restructuring schemes will include a potential financial investment from a white knight of approximately RM1.8 billion.
Media reports indicate the group is looking to divest subsidiary SapuraOMV as part of the proposed restructuring scheme. It has also completed an independent valuation for selected assets to be divested worth RM2.25 billion, as settlement to its creditors.
The group appointed MIDF Amanah Investment Bank as the principal adviser to help formulate a regularisation plan to be submitted to Bursa Malaysia in its bid to exit its Practice Note 17 (PN17) status.
MIDF Amanah has sought Bursa’s approval for an extension of time to submit the proposed regularisation plan.
Sapura Energy suffered a full-year net loss of RM3.2 billion for FY2023, which was considerably lower than the RM9.05 billion loss recorded for FY2022.
This included RM2.6 billion impairment charges of which nearly RM1.5 billion is related to goodwill on consolidation.
On the operational level, its financial performance has shown a marked improvement, recovering from an operating loss of RM2.2 billion in the previous financial year to an operating profit of RM751 million in FY2023.
The group is determined to extend its nascent turnaround and explore opportunities in areas where it is most competitive in the Eastern and Western hemispheres.