(Reuters) – Oilfield services provider Petrofac 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)
