We refer to the announcements dated 17 March 2022 and 21 March 2022 regarding the Winding Up Petition Served by Danamin (M) Sdn Bhd (“Danamin’s Petition”). We further refer to the announcement dated 9 September 2022 regarding the appointment of Mr Lim San Peen as the Interim Liquidator of Sapura Project Services Sdn Bhd (“SPSSB”). We also wish to make reference to the announcement dated 14 February 2022 in respect of the Winding Up Petition served by DTEC Engineering and Construction Sdn Bhd (“DTEC’s Petition”).

The Board of Directors of Sapura Energy Berhad (“SEB” or “the Company”) wishes to announce that the High Court of Malaya at Shah Alam has on 14 September 2022 ordered that:

a.         SPSSB be wound up; and

b.         Mr Lim San Peen be appointed as the Liquidator for SPSSB.

The details are as follows:

Presentation of Danamin’s Petition

We refer to our announcement dated 21 March 2022, that SPSSB was served with a Winding-up Petition dated 28 February 2022 on 7 March 2022.

Particulars under Danamin’s Petition

SPSSB is indebted to the Petitioner for the sum of RM4,237,128.39 being the amount due based on the Adjudication Decision dated 22 February 2021 obtained by the Petitioner against SPSSB under a construction contract for the provisions of mechanical works. SPSSB has not been able to pay according to the Adjudication Decision, which resulted in the Petitioner initiating Danamin’s Petition to wind up SPSSB. The hearing of Danamin’s Petition was fixed on 14 September 2022.

Particulars of appointment of Liquidator

Pending the hearing date of Danamin’s Petition which was scheduled on 14 September 2022, the Company and its subsidiaries as listed below, which are also the substantial creditors of SPSSB had on 13 May 2022 applied for the appointment of Mr Lim San Peen as the Liquidator of SPSSB in the event of SPSSB’s winding up. The appointment of Mr Lim San Peen as opposed to the Official Receiver is for the purposes of the efficient administration and management of SPSSB’s affairs in SPSSB’s liquidation. The subsidiaries are as follows:

a.         Sapura Digital Solutions Sdn. Bhd.

b.         Sapura Diving Services Sdn. Bhd.

c.         Sapura Maintenance Services Sdn. Bhd.

d.         Sapura Fabrication Sdn. Bhd.

e.         Sapura Pinewell Sdn. Bhd.

f.          Sapura Onshore Sdn. Bhd.

g.         Sapura Subsea Services Sdn. Bhd.

h.         Sapura Services Sdn. Bhd.

i.          Sapura Management Services Sdn. Bhd.

j.          Sapura Marine Sdn. Bhd.

k.         Sapura Drilling Services Sdn. Bhd.

l.          Sapura Power Services Sdn. Bhd.

m.        Sapura Offshore Sdn. Bhd.

n.         Sapura 3000 Pte Ltd

(collectively with the Company to be referred to as “Applicants”)

Mr. Lim San Peen is an insolvency and restructuring practitioner with more than 40 years of experience in the liquidation of companies. He is the principal of LSP & Co.

The terms of reference of Liquidator

Under the Order, the Liquidator is remunerated based on the following rates:

a.         Liquidator – RM1,800/hr

b.         Liquidator’s support team – RM500/hr to RM1,300/hr depending on seniority and experience.

The Liquidator is also permitted to draw his monthly remuneration plus disbursements and associated government sales and service tax from assets of SPSSB calculated on the hourly rates and disbursements expended by him and his support team in that particular month.

The effect of the appointment and winding up on the business operations of the listed issuer, and the total cost of investment

SPSSB is not a major subsidiary of the Company as defined under Chapter 1 of the Main Market Listing Requirements.

There will be no immediate material financial and operational impact on SEB Group arising from the appointment of the Liquidator and the winding up of SPSSB. SEB Group does not anticipate any material and/or significant losses from the winding up of SPSSB.

The Liquidator is an officer of the Court and is under a duty to act and administer the affairs of SPSSB independently of the Board of Directors of the Company. The Board of Directors nonetheless may seek periodic updates from the Interim Liquidator in respect of SPSSB’s liquidation.

SPSSB is a subsidiary of Sapura Technology Solutions Sdn Bhd (“STSSB”). STSSB’s cost of investment in SPSSB as at 31 January 2022, based on the Company’s audited financial statements for the financial year ended 31 January 2022, is RM2.5million.

Particulars and Withdrawal of DTEC’s Petition

The Board of Directors of the Company wishes to announce that DTEC Engineering and Construction Sdn Bhd had withdrawn DTEC’s Petition which was fixed for hearing on 14 September 2022. DTEC’s Petition was heard together with Danamin’s Petition.

In view that SPSSB had been wound up by an Order made under the proceedings of Danamin’s Petition, DTEC Engineering and Construction Sdn Bhd had thus withdrawn DTEC’s Petition during the hearing on 14 September 2022.

This announcement is dated 15 September 2022.