Sapura Energy receives green light for debt restructuring

Sapura Energy, a Malaysian oil and gas company, on December 13 announced a breakthrough in its debt restructuring efforts. The company has received confirmation that at least 75% of the financiers of its approximately 10.3bn ringgit ($2.2bn) in multi-currency financing facilities have granted approval in principle for its proposed debt restructuring scheme.

This marks a "significant milestone" for Sapura, which has been grappling with a high level of debt and outstanding trade creditor obligations. Since September 2022, the company has been engaged in negotiations with its financiers to reach an agreement on debt restructuring.

The approval-in-principle paves the way for the next steps in the restructuring process, which includes holding court-convened meetings with the relevant classes of creditors for Sapura and its subsidiaries. The company also noted that its restructuring exercise involves approximately 1.5bn ringgit in claims from vendors.