Petrofac advances in financial restructuring plan

Published 23/01/2025, 17:14
Petrofac advances in financial restructuring plan

LONDON - Petrofac Limited (LSE:LON:PFC), an international service provider to the energy industry, has announced significant progress in its comprehensive financial restructuring plan. The update follows the initial announcement made on December 22, when the company entered into a binding Lock-Up agreement with key stakeholders.

The company reported that the Consent Solicitation, aimed at amending the agreement governing its Notes, has received substantial support from approximately 85% of Bondholders—well above the 50% threshold required. This level of backing is a critical component of the restructuring process, indicating strong likelihood of overall support for the plan.

Additionally, over 70% of Bondholders have committed to the restructuring plan by acceding to the Lock-Up agreement. This marks a roughly 13% increase since the plan's initiation and signifies the majority of the secured creditor class's support. Petrofac continues to engage with other secured creditors and expects further commitments in the upcoming weeks.

Petrofac has also reached a settlement agreement effective upon restructuring concerning a significant historical claim, as referenced in the December announcement. Efforts to compromise or settle other historical and current claims are ongoing, aligned with the restructuring strategy.

In consultation with key creditors and clients, Petrofac has revised the restructuring timetable, extending it by four weeks to accommodate the satisfaction of a remaining condition precedent of the Lock-Up Agreement. The updated schedule sets the Convening Hearing for February 25, 2025, the Sanction Hearing for March 26, 2025, and the anticipated Restructuring Effective Date on or around March 31, 2025.

The company has pledged to continue providing updates to stakeholders in accordance with its disclosure obligations. This will include forthcoming details on the Prospectus release and dates for General and Creditor Meetings.

Petrofac specializes in the design, build, management, and maintenance of infrastructure in the oil, gas, refining, petrochemicals, and renewable energy sectors. With a workforce of 8,000 across 31 offices worldwide, the company primarily operates in the Middle East and North Africa (MENA) region and the UK North Sea.

This news article is based on a press release statement from Petrofac Limited.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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