The Board of Directors of Sapura Energy Berhad (“SEB”) wishes to announce that the Corporate Debt Restructuring Committee of Malaysia (“CDRC”), a committee under the purview of Bank Negara Malaysia (“BNM”), has on 1 September 2022 accepted SEB’s application for assistance to mediate in the debt restructuring negotiations with its MCF Financiers (“Lenders”), being certain financial institutions who have provided multicurrency facilities to Sapura TMC Sdn. Bhd., under:

1. the senior multicurrency term facilities agreement dated 29 March 2021 between, inter alia, Sapura TMC Sdn. Bhd. as borrower, and the banks named therein as conventional facility lenders; and/or
2. the multicurrency sukuk programme of up to RM10 billion in nominal value based on the Shariah principle of murabahah (via a tawarruq arrangement), established under a programme agreement originally dated 20 August 2015 between Sapura TMC Sdn. Bhd. as issuer, Maybank Investment Bank Berhad as lead arranger, and Maybank Investment Bank Berhad as facility agent, and as thereafter amended and supplemented.

SEB and nine of its subsidiaries, who are obligors to the MCF Financiers, which are listed in the Appendix 1 (“Admitted Group Companies”), were admitted with effect from that date.

Following the CDRC’s acceptance of SEB’s application, CDRC has issued a letter addressed to:

1. SEB and its Lenders whereby  the Lenders are expected to observe an informal standstill and withhold from any proceedings and SEB is expected to submit a proposal for a restructuring of its debts within 60 days from 1 September 2022; and
2. SEB where SEB and the Admitted Group Companies are required to adhere to and be bound by Bank Negara Malaysia CDRC Participant’s Code of Conduct (“Code”) and any variations thereof as determined at the discretion of the CDRC from time to time.

The operations of the SEB Group shall continue as usual in the interim.

Further announcements will be made as and when appropriate.

This announcement is dated 5 September 2022.