UK-headquartered oilfield providers supplier Petrofac has offered an replace on its proposed monetary restructuring.

In line with the UK participant, the court docket listening to for the restructuring course of was held on February 28, 2025, whereas the convening listening to was adjourned to March 20 or 21, 2025. Petrofac additional added that the court docket intends to expedite the method permitting the sanction listening to to conclude in mid-April 2025.

In a earlier replace from February 21, 2025, the group stated it secured agreements with monetary traders to facilitate the discharge of $80 million of money collateral which shall be used to safe a efficiency bond regarding a “key” E&C contract. That is set to switch the availability of recent assure amenities by a funded creditor the agency had beforehand introduced.

Petrofac additionally stated it expects to upsize the fairness increase by $30 million, bringing it to a complete of $224 million. This may improve the whole new funding raised as a part of the restructuring to $355 million.

As well as, the group plans to supply sure collectors the chance to take part within the fairness increase by as much as an incremental $25 million, on the identical worth as different traders. On the restructuring efficient date, the prevailing shareholders of the corporate are anticipated to be allotted 2.2% of the corporate’s whole share capital.

As acknowledged by the UK participant, 73.7% of bondholders have now dedicated to supporting the restructuring plan by agreeing to the lock-up settlement. This represents a rise of round 16.7% because the launch of the restructuring and constitutes over half of the secured creditor class. Discussions with different secured collectors are nonetheless ongoing.

Following the convening listening to, the corporate will begin the subscription interval throughout which secured collectors can select to take part within the new cash choices accessible to them beneath the phrases of the restructuring. 

Petrofac introduced in late September 2024 that it had reached an settlement in-principle with sure “key” stakeholders on the framework for a complete monetary restructuring to strengthen the group’s monetary place and higher place it to ship on its technique.

On the time, the agency defined its administrators have been assessing different choices accessible since beginning the evaluation of the corporate’s strategic choices in December 2023. Of their view, this monetary restructuring gives one of the best accessible end result for the corporate and its stakeholders.

The proposed monetary restructure contains a number of features, together with new long-term funding underwritten by an advert hoc group of senior secured noteholders and extra fairness financing anticipated to be sourced from new and current traders, to assist operational liquidity.

In December 2024, Petrofac introduced that it entered right into a binding lock-up settlement with key monetary collectors on the phrases of a complete restructuring, which formalized the in-principle settlement introduced in September.

Other than being busy with restructuring, Petrofac lately received a $335 million contract for work on ADNOC Fuel’ Habshan Complicated. Petrofac’s subsidiary is about to construct two fuel compressor trains, related utilities, and energy methods for the advanced that shall be linked by way of pipelines to the UAE big’s Ruwais LNG undertaking beneath development.