KUALA LUMPUR: Sapura Energy Bhd yesterday said it has been given three more months by the Corporate Debt Restructuring Committee (CDRC) to come up with a resolution for its debt issues.
The CDRC has extended Sapura Energy's standstill period until June 10 .
Under the standstill, the muti-currency financing (MCF) creditors will not take any recovery action from Sapura Energy and withhold all legal proceedings, while the company comes up with a proposed resolution for debt servicing.
"In line with Bank Negara Malaysia's CDRC Participants Code of Conduct, the MCF financiers are to continue to observe the informal standstill and withhold all legal proceedings, and/or any other recovery action initiated or intended against Sapura Energy and/or the admitted group companies," it said in a filing to Bursa Malaysia Securities Bhd on Tuesday.
The extension is the second one from the CDRC after a six-month extension granted to the company ended on March 10.
The CDRC was established by the Malaysian government during the 1998 financial crisis.
It provides a platform for corporate borrowers and their creditors to work out feasible debt resolutions without having to resort to legal proceedings.
Sapura Energy said the three-month extension was allowed considering the progress of the company's proposed structuring scheme, as well as the three-month extension it received from the court on March 11, to hold meetings with creditors for debt restructuring purposes.
The court extension was first given for a duration of nine months and ended on March 10.
The orders, sanctioned under the Companies Act 2016, will enable each of the companies to summon meetings with creditors, to consider and approve a proposed scheme of arrangement and compromise as part of Sapura Energy's group-wide debt restructuring plan.
Sapura Energy posted a net profit of RM30.89 million in its third quarter ended Oct 31, 2023, more than double its net profit for the same quarter in the previous year.
It closed half a sen lower to 4.5 sen a share yesterday.