Malaysian offshore service provider Barakah Offshore and its potential white knight have mutually agreed to terminate agreements related to the company’s proposed regularisation plan.
The regularisation plan, proposed by the company in July, included the disposal of a pipelay barge to Lecca Group for $21m as well as a share capital reduction, share placements, plus debt settlements through the issuance of redeemable unsecured loan stocks. The deals would have made Lecca Group the single largest shareholder of Barakah Offshore with a 44.87% equity interest.
“Due to the suspension of the licence held by its wholly owned subsidiary PBJV Group from Petronas, the board is of the view that it will be challenging for Barakah to implement its proposed regularisation plan,“ Barakah Offshore said in a release.
The company said it will continue to explore other avenues to formulate a plan to regularise its financial condition. As of the end of May, Barakah Offshore and its subsidiary PBJV had total outstanding liabilities amounting to RM106.65m ($25.75m) and RM287.99m ($69.52m) respectively.