Date: 13.12.2023.

Kuala Lumpur, 13 December 2023

Sapura Energy Berhad (“Sapura Energy” or “the Company”) has received written confirmation from the Corporate Debt Restructuring Committee (“CDRC”) that at least seventy-five percent (75%) of the financiers of its approximately RM 10.3 billion in Multi-Currency Financing Facilities (“MCF Financiers”) have provided the requisite approval-in-principle for a proposed debt restructuring scheme (“PRS”).

The confirmation marks a significant milestone in Sapura Energy’s Reset plan, which includes efforts to address its unsustainable level of debt and amounts owed to trade creditors. The achievement reflects the Company’s commitment to formulating a fair and equitable solution for all its stakeholders, particularly Malaysian vendors who are small and medium enterprises. The exercise involves approximately RM1.5 billion in claims from vendors.

Since September last year, Sapura Energy and the MCF Financiers have been engaged in CDRC-mediated negotiations to reach an accord on the PRS. The approval-in-principle for the PRS paves the way for court-convened meetings with the relevant classes of creditors of Sapura Energy and its relevant subsidiaries.

“The Board of Directors and senior management of Sapura Energy extend their appreciation to the members of the CDRC for their invaluable guidance and professionalism during the mediation process. We are also grateful to the MCF Financiers for their continued support for Sapura Energy,” said Sapura Energy Group CEO Datuk Mohd Anuar Taib.

“We also wish to record our special acknowledgment to our advisors PricewaterhouseCoopers Advisory Services Sdn Bhd, Sage 3, Mr. Saheran Suhendran, Rahmat Lim & Partners, Kirkland & Ellis, Malaysian Industrial Development Finance Berhad, and Albar & Partners, as well as the advisors to the MCF Financiers including Kroll, Wong & Partners and Mayer Brown. Their collaboration, strategic insights, and commitment were instrumental in achieving this accomplishment.”

The Company and its advisors will continue working with the MCF Financiers and the CDRC to achieve successful closure of this debt restructuring.  “With the approval-in-principle, we are quite confident that we are now approaching the last few milestones of this journey,” Datuk Anuar added. “This is indeed a positive step towards regularising our financial position, ultimately helping Sapura Energy exit from its status as a Practice Note 17 company.”

He also acknowledged Sapura Energy’s clients and vendors who had maintained their confidence in the Company throughout this challenging period. “Given the hurdles we faced, it’s understandable that not everyone could give us their backing. Hence, we are immensely grateful to the valued partners who have consistently demonstrated their unwavering support,” Datuk Anuar remarked. “We genuinely appreciate your trust, and we assure you of our continued efforts to deliver on promises and strengthen collaborations.”

Cautionary note: “Sapura Energy”, “the group” and “the company” are used for convenience where references are made to Sapura Energy Berhad in general. Similarly, words like “we”, “us” and “our” are used to refer to Sapura Energy Berhad in general or to those who work for the company and its subsidiaries, where relevant. This press release may contain forward-looking statements. All statements other than statements of historical facts included in this press release, including, without limitation, those regarding our financial position, financial estimates, business strategies, prospects, plans and objectives for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Such forward-looking statements reflect our current view with respect to future events and are not a guarantee of future performance. Forward-looking statements can be identified by the use of forward-looking terminology such as the words “may”, “will”, “would”, “could”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “aim”, “plan”, “forecast” or similar expressions and include all statements that are not historical facts.