Petrofac's Path to Financial Recovery and Restructuring Update

Petrofac's Financial Restructuring Plan Progress

Petrofac Limited (LSE: PFC), a leading international service provider for the energy sector, is making notable advancements in its financial restructuring strategy. This positive development comes after the company secured a Lock-Up agreement with essential stakeholders, marking a significant step in its ongoing efforts to stabilize its financial standing.

The recent report reveals that the Consent Solicitation process, which aims to modify the terms of its existing Notes agreement, has garnered impressive backing from approximately 85% of Bondholders. This percentage significantly surpasses the necessary 50% threshold required for progress, highlighting a strong commitment from the investment community towards Petrofac's restructuring efforts.

Majority Support from Bondholders

Furthermore, over 70% of Bondholders have shown support by joining the Lock-Up agreement, reflecting a nearly 13% rise since the commencement of the restructuring initiative. This development indicates a robust consensus among the secured creditor class, which is crucial for the successful execution of the restructuring plan. The company continues to engage actively with other secured creditors, anticipating additional commitments in the near future.

Settlement Agreements and Ongoing Claims

As part of its restructuring strategy, Petrofac has reached a settlement agreement concerning a substantial historical claim, which reinforces its commitment made in previous announcements. The company is also ardently working to resolve other historical and current claims, aligning these efforts with the overall restructuring framework aimed at effective stabilization.

Revised Timetable for Restructuring

In collaboration with key creditors and clients, Petrofac has adjusted its restructuring timeline, extending it by four weeks to meet a critical condition of the Lock-Up Agreement. The newly established schedule includes pivotal dates: the Convening Hearing is set for February 25, the Sanction Hearing for March 26, and the anticipated Restructuring Effective Date around March 31.

Commitment to Stakeholder Transparency

The commitment to transparency remains a focal point for Petrofac as it vows to keep stakeholders informed about ongoing developments. The company plans to share timely updates that cover the release of the Prospectus and set timelines for General and Creditor Meetings. This communication is vital to maintaining trust and ensuring all parties are adequately informed of the company's strategic progress.

Petrofac's Operations in Energy Sector

Specializing in the management, design, and maintenance of infrastructure across various energy sectors, Petrofac plays a crucial role in oil, gas, refining, petrochemicals, and renewable energy. With a dedicated workforce of around 8,000 professionals spread across 31 global offices, the company's primary operations focus on the Middle East and North Africa (MENA) region, as well as the UK North Sea.

As Petrofac continues on its path toward financial recovery, the ongoing support from bondholders and stakeholders will be instrumental in determining its success. By adapting its strategy to meet evolving circumstances, the company is positioning itself to emerge stronger and more resilient in the dynamic energy landscape.

Frequently Asked Questions

What recent progress has Petrofac made in its restructuring plan?

Petrofac has received substantial support from approximately 85% of Bondholders as part of its financial restructuring efforts, indicating strong backing for the plan.

What is the current status of Petrofac's bondholder support?

Over 70% of Bondholders have committed to the restructuring plan by entering the Lock-Up agreement, showcasing a solid commitment from secured creditors.

When are the significant hearings related to Petrofac's restructuring planned?

The Convening Hearing is scheduled for February 25, while the Sanction Hearing will take place on March 26, followed by the anticipated Restructuring Effective Date around March 31.

How is Petrofac maintaining communication with stakeholders?

Petrofac is committed to keeping stakeholders informed with updates on key developments, including the Prospectus release and timelines for General and Creditor Meetings.

What sectors does Petrofac operate in?

Petrofac specializes in the design, management, and maintenance of infrastructure in oil, gas, refining, petrochemicals, and renewable energy industries.

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