04-21-2022, 09:11 AM
(This post was last modified: 04-21-2022, 09:12 AM by superadmin.)
Good plan ruined by half-hearted execution
![[Image: sapura-energy-logo.jpg]](https://s3media.freemalaysiatoday.com/wp-content/uploads/2022/04/sapura-energy-logo.jpg){kind=logo}
PETALING JAYA: If there was a well-thought out but poorly executed restructuring plan, it has to be that of Sapura Energy Bhd (SEB).
The oil and gas (O&G) services provider had been badly hit by the tumble in crude prices. A plan to reduce its debts and to raise working capital so that it could continue to secure new contracts was then put on the table.
However, the plan was never fully implemented. A major stakeholder would not or could not come up with the full sum it was expected to, while a new line of credit came with so many conditions attached that it was near impossible to utilise it.
The plan for a restructuring exercise was first mooted in 2017. By then, SEB had begun to report losses.
The oil and gas (O&G) services provider had been badly hit by the tumble in crude prices. A plan to reduce its debts and to raise working capital so that it could continue to secure new contracts was then put on the table.
However, the plan was never fully implemented. A major stakeholder would not or could not come up with the full sum it was expected to, while a new line of credit came with so many conditions attached that it was near impossible to utilise it.
The plan for a restructuring exercise was first mooted in 2017. By then, SEB had begun to report losses.
- More -