KUALA LUMPUR (Jan 15): Debt-laden oil and gas services company Barakah Offshore Bhd announced today that it is still negotiating a debt settlement proposal with its lenders and creditors. 

In a filing with Bursa Malaysia, Barakah said it will continue to engage with its lenders and creditors to achieve an amicable debt settlement proposal.

"Meanwhile, the board of directors will also seek all legal avenues to protect Barakah and its subsidiaries when necessary, while a debt settlement proposal is being negotiated with the group’s lenders and creditors," it added.

This follows a Kuala Lumpur High Court order to restraint any proceedings and actions by lenders against Barakah and its wholly-owned unit PBJV Group Sdn Bhd that had expired yesterday (Jan 14). 

“The board wishes to inform that as at the date of this announcement, none of the Barakah group’s lenders has called for an event of default on any of the group’s financing facilities,” said Barakah.

The restraining order was obtained on Oct 12 last year. When announcing the order on Oct 16, 2018, Barakah said it had applied “as part of proactive measure” to manage its debt levels and so that it can negotiate terms with its lenders and creditors, without having the threat of any actions taken against the group. 

As at Sept 30, 2018, Barakah had negative cash position against short- and long-term borrowings of RM28.43 million and RM172.71 million respectively.

Shares of Barakah closed down 0.5 sen or 7.69% at six sen today, giving it a market capitalisation of RM50.15 million.