KUALA LUMPUR (Dec 30): Barakah Offshore Petroleum Bhd is in talks with two potential investors interested in the group's prized asset Kota Laksamana 101 (KL101) pipe-laying barge, as it seeks to formulate its way forward after pulling the plug on its debt restructuring scheme last August.

Speaking to reporters after Barakah's annual general meeting here today, group president and chief executive officer Nik Hamdan Daud shared that two parties — one local and one international — have visited and shown interest in renting KL101 and utilising Barakah's manpower.

Nik Hamdan was quick to clarify that nothing has been firmed with the parties to be part of Barakah's new regularisation plan.

"But one thing is clear, Barakah's initial white knight Lecca Group Pte Ltd'is not in the game anymore," Nik Hamdan said.

The focus is on getting KL101 utilised, as the barge has actually caused near half of Barakah's losses presently due to financing and maintenance costs.

The holding company, Barakah's wholly-owned Kota Laksamana 101 Ltd, had received a notice of termination, recall, and demand from Export-Import Bank of Malaysia Bhd in October for defaulting on US$43.59 million (RM182.6 million).

"If it's for the long term, we would rather prefer to keep the barge," said Nik Hamdan. "If we dispose, we can still bid but maybe we won't be as competitive because we will have to [rent] the assets."

"But for us, a disposal is also a potential step to ease our burden at this point in time," he conceded.

Recall that earlier this year Barakah and its wholly-owned unit PBJV Group Sdn Bhd axed their debt restructuring scheme, because Petronas suspended PBJV's licence for a three-year period.

In the scheme of things, Singaporean ship bunkering outfit Lecca Group was supposed to come in as a major shareholder of Barakah, and to acquire KL101 for some US$21 million or RM88 million cash.

The proposed scheme of PBJV involves settling debts amounting to RM287.99 million via cash and new securities, and a RM191.04 million haircut.

Barakah's proposed scheme, meanwhile, aimed to settle debts amounting to RM106.65 million via new securities and a haircut of RM69.6 million.

Now Barakah has until May 2020 to submit a new regularisation plan to regulators. In the meantime, the group is relying on a restraining order awarded by the High Court to minimise any intervention.

At 3.20pm, Barakah shares were trading at 2.5 sen a share, for a market capitalisation of RM20.9 million.