Oilfield services provider Petrofac announced on Thursday that more than 70% of its bondholders have approved its restructuring plan, aimed at raising equity financing to stabilize its financial position.
The company, which experienced a surge in orders during 2022 due to high oil prices, faced significant challenges last year with cost overruns and payment delays in its engineering and construction unit, leading to several profit warnings.
In December, the London-listed firm signed a binding agreement with key financial creditors. The deal includes $325 million in new funding and the conversion of approximately $772 million of existing debt into equity.
Petrofac also revealed that over 85% of bondholders have endorsed its proposal to amend terms related to key notes essential to its financial rescue. The company expects this support to translate into broader backing for its overall restructuring plan.
Talks with other secured creditors are ongoing, with additional commitments anticipated in the coming weeks.
To fulfill the remaining condition of its lock-up agreement, the company has extended its restructuring timeline by four weeks.