CDRC to assist Sapura Energy in mediation

PETALING JAYA: The Corporate Debt Restructuring Committee of Malaysia (CDRC) has agreed to assist Sapura Energy Bhd’s (SEB) to mediate in the debt restructuring negotiations with its multicurrency facilities financiers.

These are the financial institutions which have provided multicurrency financing facilities to Sapura TMC Sdn Bhd, SEB said in a filing with Bursa Malaysia yesterday.

Following this, SEB’S relevant lenders are expected to observe an informal standstill and withhold from any sort of legal proceedings, it said.

“SEB is expected to submit a proposal for a restructuring of its debts within 60 days from

Sept 1. And SEB and the admitted group companies are required to adhere to and be bound by Bank Negara’s CDRC participant’s code of conduct and any variations thereof as determined at the discretion of the CDRC from time to time,” it said.

SEB added its operations shall continue as usual in the interim period. CRDC is a committee under the purview of the central bank and is a platform for corporate borrowers and their creditors to work out feasible debt resolution without having to resort to legal proceedings.

For SEB’S case, the financing facility relates to its multicurrency sukuk programme of up to Rm10bil in nominal value.

The cash-strapped company said the facility was established under a programme agreement originally dated Aug 2015 between Sapura TMC Sdn Bhd as issuer and Maybank Investment Bank Bhd as lead arranger and facility agent.

Apart from Sapura TMC the financing facility also involves Sapura Energy, Sapura Fabrication Sdn Bhd, Sapura Offshore Sdn Bhd, Sapura Subsea Services Sdn Bhd, Sapura Pinewell Sdn Bhd, Sapura Technology Solutions Sdn Bhd, Sapura Drilling Pte Ltd, Sapura Drilling Probadi Sdn Bhd and Sapura Petroleum Ventures Sdn Bhd.