Sapura Energy Receives Second Approval for Restructuring


Kuala Lumpur: Sapura Energy Bhd has obtained written confirmation from the Corporate Debt Restructuring Committee (CDRC) that MCF Financiers have granted additional approval-in-principle for certain refinements to the terms of the proposed restructuring scheme (PRS).



According to BERNAMA News Agency, MCF Financiers, representing at least 75 percent of Sapura Energy’s Multi-Currency Financing Facilities, provided this crucial approval on January 11, 2025. This development marks a significant milestone in Sapura Energy’s efforts to stabilize its financial position and exit its status as a Practice Note 17 company, as stated by interim chairman Shahin Farouque Jammal Ahmad.



Since September 2022, Sapura Energy and the MCF Financiers have been engaged in negotiations mediated by the CDRC to finalize the PRS. The first approval-in-principle was received in December 2023. Following this, the company continued to fine-tune the PRS, addressing progress in resolving contingent claims through the proof of debt process.



The second approval-in-principle sets the stage for court-convened meetings with the relevant classes of creditors of Sapura Energy and its subsidiaries. It also opens the possibility for prospective financial investment from a white knight.