Date: 7.03.2024.

Kuala Lumpur, 7 March 2024

Sapura Energy Berhad (“Sapura Energy” or ‘the Company”) and its 22 wholly owned subsidiaries (collectively, the “Scheme Companies”) have been granted new Convening and Restraining Orders (the “Orders”) by the High Court of Malaya today for a period of 3 months, commencing 11 March 2024.

The Orders, sanctioned under the Companies Act 2016, will enable each of the Scheme Companies to summon meetings with creditors, to consider and approve a proposed scheme of arrangement and compromise (collectively, “the proposed restructuring scheme” or “PRS”) as part of the Company’s groupwide debt restructuring plan. The Restraining Orders will assist the Scheme Companies to engage with creditors without being disrupted by the threat of litigation. The previous Convening and Restraining Orders granted on 8 March 2023 (and extended on 6 June 2023) are set to expire on 10 March 2024.

In its application to the Court, Sapura Energy stated that significant progress in the restructuring exercise has been made. Its multi-currency lenders have provided the requisite Approval-in-Principle for the proposed restructuring scheme while claims from its trade creditors under the Proof of Debt (“POD”) process have been fully reviewed. Sapura Energy’s White Knight has also reaffirmed its support for the restructuring. The Orders will provide all parties the necessary time to conclude defined terms and conditions to finalize the proposed restructuring scheme.

Sapura Energy’s debt restructuring exercise aims to address its multi-currency financing of approximately RM10.8 billion and outstanding payments to trade creditors amounting to about RM1.5 billion.

Commenting on the Court Orders, Sapura Energy Chairman Dato' Mohammad Azlan Abdullah thanked the Group’s multi-currency financing lenders for continuing to support the Company’s restructuring scheme. "As previously announced, we appreciate the Approval-in-Principle from our financiers for the PRS. This was a major point that will enable us to move ahead with the restructuring,’ he said.

Sapura Energy Group Chief Executive Officer Datuk Mohd Anuar Taib also conveyed similar appreciation to Sapura Energy’s White Knight, stating, "Their backing is crucial in instilling confidence in our Company’s strategic direction. We greatly value their support, which will ensure Sapura Energy’s sustainable future beyond this turnaround.”

He also acknowledged the considerable amount of time taken to progress the debt restructuring exercise. “We are grateful to all our creditors for their patience and understanding throughout this very complex debt restructuring exercise. Despite the challenges, we have been consistent and focused in pursuing a resolution that is equitable and beneficial for all parties involved, particularly the small and medium Malaysian vendors within the energy industry ecosystem," he added.

The next milestones in the restructuring process include completing the POD assessment, finalising the scheme papers, and calling for court-convened meetings with all creditors. Sapura Energy is also concurrently working with its advisors to develop and submit a regularisation plan to address Sapura Energy’s status as company under Practice Note 17.

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.