2 days Ago By Faiqah Kamaruddin
KUALA LUMPUR: Sapura Energy Bhd, plagued by troubles in the past, has made huge strides in restoring its financial health since it was first classified as a listed issuer under Practice Note 17.The offshore and marine contractor, rig owner and upstream player is now at a crucial stage in its debt restructuring efforts, its newly-appointed group chief executive officer Muhammad Zamri Jusoh said.Sapura Energy, which used to be the second-largest oil and gas sector services company in the world with a value of RM30 billion, is addressing its debts and settle outstanding amounts owed to its vendors and other creditors.
"I'm excited about the progress we have made," Zamri told Business Times in his first interview with the media since assuming the post effective March 1."As part of our ongoing restructuring, Sapura Energy and 22 of its subsidiaries have been working hard on their schemes of arrangement and compromise. These are essentially plans to address the company's unsustainable debt and settle outstanding amounts owed to about 2,200 vendors," he added.
Between Feb 21 and 27 this year, the company held 52 separate court convened meetings with its creditors."The response has been overwhelmingly positive, with creditors voting strongly in favour of the proposed schemes. This is a major milestone in its restructuring process, and it's a significant step toward restoring our financial strength," Zamri said.
Looking back, he said it has been "a very humbling experience and tough" three years since Sapura Energy began the restructuring journey in March 2022. "That's a lot of time for creditors to wait, and yet they've stuck with us through it all. It means a lot.
"Zamri said the company's commitment to fully settling its preferred unsecured creditors aligns with its goal of securing a sustainable future in the oil and gas industry.The strategy is intended to safeguard the supply chain, especially Malaysia's oil and gas vendors, he said, emphasising that it took years to develop the ecosystem and ensure its continuity.He added that the preferred unsecured creditors are primarily Malaysian ecosystem vendors who have been awaiting repayment for over three years.
"For many of them, it's a matter of survival. We had always been committed to pay these Malaysian vendors in full and we are grateful to be able to raise funding through the issuance of the convertible debt instrument to undertake this repayment."As a Malaysian company with global reach, it is imperative we play our part in preserving a strong, resilient, and globally competitive oil and gas services and equipment sector that is well-positioned to serve the Energy Transition agenda.
"He said the preferred unsecured creditors also include key foreign vendors who are critical to Sapura Energy's operations. They include original equipment manufacturers and those providing specialised services or vessels.For these key foreign vendors, the company is planning to settle their claims using internally generated funds.
"Honestly, I feel a sense of pride because so many people – both inside and outside the company – have not abandoned us during our time of difficulty."We have had incredible support from our MCF financiers, the Corporate Debt Restructuring Committee, our advisors and, of course, the amazing people at Sapura Energy who have worked tirelessly to keep everything on track," Zamri shared.He added that this milestone reflects everyone's dedication, but emphasised that the journey is not yet complete, with more work remaining as the company advances toward the restructuring's effective date.
Following the conclusion of the court meetings, the company's subsidiary firms have directed their solicitors to file an application for the sanction of the schemes at the High Court of Malaya. He explained that the scheme will become binding on the involved companies and their creditors once the court grants the sanction order and it is lodged with the Companies Commission of Malaysia."At the same time, we will continue refining our regularisation plan, which depends on the success of the schemes.
"We are working closely with our advisors to put together a solid plan to submit to Bursa Malaysia, outlining how Sapura Energy will emerge as a leaner, stronger and more sustainable company moving forward," Zamri said.© New Straits Times Press (M) Bhd.
