UK's Petrofac in binding agreement with creditors on financial restructuring (updated)

Petrofac

22/12/2024 22:43

(Adds details and background in paragraph 2 onwards)
       Dec 22 (Reuters) - Oilfield services provider Petrofac
 PFC.L  said on Sunday that it has entered into a binding
agreement with key financial creditors on the terms of a
comprehensive restructuring.
    The plan includes $325 million in new funding and the
conversion of approximately $772 million of existing debt into
equity, the company said.
     "We have made good progress in closing out our legacy
portfolio of contracts, our new projects are progressing well,
we have a refreshed strategy focused on our strengths, with
enhanced bidding discipline and project governance," Group Chief
Executive Tareq Kawash said in a statement.
    In September, Petrofac reached an in-principle agreement
with some of its key stakeholders for a financial restructuring
that included raising funds through equity financing and
conversion of most of its debt into equity.
    The London-listed firm reported bigger half-yearly losses in
September amid difficulties in closing legacy contracts in its
biggest unit. The company reported its net loss widened to $208
million in the six months ended June 30 from $141 million in the
same period last year.
    After a boom in orders due to high oil prices in 2022, the
firm has been struggling with a string of profit warnings
related to legacy contracts and payment delays at its largest
division, Engineering & Construction, in recent months. The
company had previously said it was in discussions to sell some
non-core assets.

 (Reporting by Pretish M J in Bengaluru; Editing by Leslie Adler
and Lisa Shumaker)
 ((PretishMJ@thomsonreuters.com; +91 8056974974;))