THHE close to finalising novation agreement with Yinson Energy

KUALA LUMPUR: TH Heavy Engineering Bhd (THHE) is in the final stages of negotiation with Yinson Energy Sdn Bhd to novate contract awarded by JX Nippon Oil & Gas Exploration (M) Ltd and not being “scuppered” as reported by a weekly.

In a statement yesterday, THHE said the contract was for the engineering, procurement, construction, installation and commissioning and leasing of a floating production, storage and offloading vessel to be deployed at the Layang field in Block SK10, offshore Sarawak.

THHE said it secured an overwhelming support from its scheme creditors under Scheme of Arrangement (SoA) at its court-convened creditors’ meeting on Dec 15, 2017 with all the company’s secured creditors supporting and 94.5 per cent of the unsecured creditors backing it.

On the other note, the company’s three units – THHE Fabricators Sdn Bhd, O&G Works Sdn Bhd and THHE Offshore Services Sdn Bhd – had also got the nods from its creditors for the SoA, it said.

Chief Executive Officer, Suhaimi Badrul Jamil, said the company had taken some time to finalise the proposed JX Nippon contract novation due to the time taken for the formulation of a Scheme of Arrangement (SoA) that was acceptable to THHE creditors and key stakeholders as well as time required to meet the regulatory aspects of a listed company.

“It is vital for SoA that we have worked this long to formulate must not only be acceptable to creditors and key stakeholders but must also be credible as the SoA will form part of the Regularisation Plan that we as a Practice Note 17 (PN17) company need to submit to Bursa Malaysia Securities Bhd for its approval,” he said. — Bernama