We refer to our Announcements dated 31 May 2022, 1 July 2022, 1 August 2022, 1 September 2022, 3 October 2022, 1 November 2022 and 1 December 2022 in relation to the Company being classified as an affected listed issuer and the disclosure requirements under Paragraph 4.1(c) of PN17.

The Board of Directors of the Company wishes to provide a status update on the Company’s efforts to address its PN17 status. Since the Announcement dated 31 May 2022, the Company has been advancing its plan to regularise the financial position of its group of companies (“Regularisation Plan”).

The Company has had a number of meetings with certain of its existing financiers (as described below, the “MCF Financiers”) to consider a proposed scheme of arrangement and compromise (“PSA”), to be approved in due course by the various classes of creditors of the affected members of the group in court-convened meetings. The MCF Financiers are those financial institutions which provided multicurrency financing facilities to Sapura TMC Sdn. Bhd. ("Sapura TMC") under:-

1.           the senior multicurrency term facilities agreement dated 29 March 2021 between, inter alia, Sapura TMC as borrower, and the banks named therein as conventional facility lenders; and

2.           the multicurrency sukuk programme for the issuance of sukuk murabahah of up to RM10,000,000,000 in nominal value (or the equivalent in USD, converted at a notional exchange rate of USD1.00 = RM4.15) based on the Shariah principle of murabahah (via a tawarruq arrangement) established under a programme agreement originally dated 20 August 2015 between Sapura TMC as issuer, Maybank Investment Bank Berhad as lead arranger and facility agent, and as thereafter amended and supplemented.

The Company is nearing completion in its proof of debt exercise with its trade creditors in connection with the PSA.

On 1 September 2022, the Corporate Debt Restructuring Committee (the “CDRC”), approved the Company’s application for the CDRC’s assistance to mediate in its debt restructuring negotiations with the MCF Financiers. Following the Company’s admission to the CDRC regime, the relevant financial institutions are expected to observe an informal standstill, and the Company was expected to submit a proposal for a restructuring of its debts owed to such financial institutions within 60 days from 1 September 2022. In line with such requirement, the Company submitted a draft Proposed Restructuring Scheme ("PRS") to the CDRC on 29 September 2022, and has since been participating in CDRC mediated meetings with the financial institutions to seek feedback on and to refine the terms of the PRS.

In line with such requirement, the Company submitted a draft PRS to the CDRC on 29 September 2022, and has since been participating in CDRC mediated meetings with the financial institutions to seek feedback on and to refine the terms of the PRS.

The Company has approximately five months to submit its Regularisation Plan to the relevant authorities for approval.

This announcement is dated 3 January 2023.