Acquired in 2011, the US$82.5 million vessel had by 2016 run up a humongous bill for conversion into an FPSO unit. With only 42% of the process completed, THHE was in debt to contractors to the tune of RM602 million, giving rise to a total debt of almost RM1 billion as at February 2017.

Facing the prospect of liquidation by the courts, THHE entered into a scheme of arrangement with its creditors.

Sanctioned by the High Court in February 2018, the scheme involved selling THHE’s interests in a lucrative contract with JX Nippon Oil & Gas Exploration Corporation to rival Yinson Energy at a discounted valuation of US$92.6 million.

A substantial part of those proceeds was earmarked to pay off creditors.

One of the secured creditors identified by the scheme for payment was Dubai Drydocks, which was owed US$7.7 million in wharfing and management charges.

Inexplicably, however, THHE failed to secure the vessel’s release, and with US$6.2 million still owing, the vessel has now been put up for auction.

The situation has left the vessel’s conversion contractors up in arms. Many of these contractors have had to absorb massive losses to allow the scheme of arrangements to go through. Some have not survived.

To date, no explanation has been forthcoming from THHE or its ultimate shareholder, the finance ministry.

Having invested heavily in 2018 to rehabilitate underperforming Tabung Haji assets, the ministry’s silence is particularly deafening.