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LONDON - Petrofac (LON:PFC) Limited, a leading international service provider to the energy industry, has finalized agreements with key stakeholders, marking a significant step in its comprehensive financial restructuring plan. The company announced that the convening hearing for its restructuring is set for February 28, 2025, with the sanction hearing following on March 26, 2025, and the effective date of the restructuring expected around March 31, 2025.
The restructuring initiative, which was first publicized on December 23, 2024, has evolved to include the release of $80 million of cash collateral. This sum will be used to secure a performance bond for a vital engineering and construction contract, replacing the need for new guarantee facilities previously considered.
In a show of confidence from financial investors, Petrofac expects to increase its equity raise by $30 million, bringing the total to $224 million. This adjustment will elevate the total new funding to $355 million as part of the restructuring efforts.
The company has also opened the door for certain creditors to participate in the equity raise, offering an additional $25 million at the same price as other investors. On the restructuring effective date, existing shareholders are set to receive 2.2% of the company’s total share capital, a slight decrease from the previously announced 2.5%.
Support for the restructuring plan has grown, with 73.7% of bondholders now committed, representing an increase of approximately 16.7% since the plan’s inception. This majority signifies over half of the secured creditor class, and discussions with other secured creditors are ongoing.
Following the convening hearing, Petrofac will initiate the subscription period, allowing secured creditors to opt into the new money options available under the restructuring terms. Kroll Issuer Services Limited will provide further information on the process, timing, and documentation as the information agent.
This announcement, based on a press release statement, reflects the company’s commitment to updating stakeholders and fulfilling its disclosure obligations. Additional details will be provided to the company’s creditors through a supplementary practice statement letter and at the forthcoming general and creditor meetings.
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