Petrofac secures over 70% creditor support for restructuring plans (updated)

Petrofac

23/01/2025 17:30

(Adds background throughout)
       Jan 23 (Reuters) - Oilfield services provider Petrofac
 PFC.L  said on Thursday over 70% of its bondholders backed the
restructuring plan deal it entered into last year to raise funds
through equity financing, crucial for stabilising its financial
position.
    Following a surge in orders in 2022 on high oil prices, the
company struggled with cost overruns and payment delays at its
largest unit - engineering and construction leading to multiple
profit warnings in the past year.
        In December, the London-listed firm entered into a
binding agreement with key financial creditors, which included
$325 million in new funding and the conversion of about $772
million of existing debt into equity.
        Petrofac added on Thursday that over 85% of bondholders
supported its plans to amend an agreement related to notes key
to its financial rescue efforts. The company therefore expects
bondholders in support of the notes amendment will back its
overall restructuring. 
        Discussions with other secured creditors are ongoing,
and the company expects additional commitments in the coming
weeks.
        The company has also adjusted the restructuring
timetable by four weeks to meet a remaining condition of the
lock-up agreement.

 (Reporting by Aatrayee Chatterjee in Bengaluru; Editing by
Krishna Chandra Eluri and Shailesh Kuber)
 ((Aatrayee.Chatterjee@thomsonreuters.com;))