Court grants Barakah another 90 days’ extension to restraining order

KUCHING: Barakah Offshore Petroleum Bhd (Barakah) has obtained from the Kuala Lumpur High Court a further 90 days’ extension order restraining all proceedings and actions brought against the company and its subsidiaries by any of their creditors.

The extension period is effective from Jan 14, 2019.

The first 90-day restraining order was granted by the court on Oct 12, 2018 to Barakah and its wholly-owned subsidiary PBJV Group Sdn Bhd (PBJV).

The order, according to Barakah, was applied for as part of proactive measures to manage the debt levels of the Barakah group to allow it to negotiate terms with its lenders and creditors without having the threat of any proceedings and actions being brought against the group.

The extended restraining order expressly exclude contingent creditors, Barakah said in a filing with Bursa Malaysia.

The order also approved Sulaiman Ibrahim to act as director of the company pursuant to Section 368(2)(d) of the Companies Act, 2016.

“The company is still in the midst of formulating a debt restructuring scheme to settle the group’s debt.

“No definite or conclusive terms have been agreed upon with any of the lenders and creditors or Barakah group.

“At this juncture, the actual amount of debt to be restructured has yet to be determined. It is to be noted that based on our fourth quarterly unaudited financial report for the financial period ended 31 December 2018, Barakah and its subsidiaries recorded a total liabilities of RM335.6 million,”  added Barakah, which has Sarawakian tycoon Tan Sri Yaw Teck Seng @ Hiew Teck Seng as one of its substantial shareholders.

Barakah’s filing was to clarify a business report entitled “Barakah seeks to restructure RM726mil debt” published by The Edge business and investment weekly (March 18-24 issue). 

In the 12 months to Dec 31, 2018, Barakah group has recorded lower pre-tax loss of RM51.1 million on revenue of RM243.2 million from a loss of RM216.7 million on turnover of RM310.9 million in FY2017.

Barakah is an investment holding company while its 100%-owned subsidiary PBJV is one of the main contractors in offshore installation and hook-up and commissioning as well as  chartering of marine vessels and equipment.

PBJV’s other business is underwater services involving inspection, maintenance, repair, drilling, support and related services for underwater facilities.

So far this year (2019), PBJV has been awarded two major contracts. The first contract is from Petrofac (Malaysia-PM304) Ltd for the provision of Pan Malaysia Maintenance, Construction and Modification (PM-MCM) contract (for year 2018-2023) for oil and gas fields’ structures and facilities offshore Peninsular Malaysia.

The total contract value, according to Barakah, is not fixed and will depend on the actual scope based on work orders to be issued by Petrofac from time to time throughout the contract period.

The second contract secured last month is a farm-in agreement by IPC Malaysia B.V. for the provision of PM-MCM contract (2018-2023) Package A (West Malaysia). The total contract value also depends on the work orders to be issued by IPC Malaysia.