(Alliance News) - Petrofac Ltd on Monday said it has finalised agreements with "key" stakeholders to advance its financial restructuring plan, securing additional funding and setting a target completion date of March 31.
The energy infrastructure company with core markets in the Middle East and North Africa said it has reached agreements that will allow it to commence court proceedings related to the restructuring. A convening hearing is scheduled for February 28, followed by a sanction hearing on March 26.
Petrofac said it also secured deals with financial investors to release USD80 million in collateral, which will be used to secure a performance bond for a "key" engineering and construction contract.
The company expects to upsize its planned equity raise by USD30 million to USD224 million, increasing the total new funding raised as part of the restructuring to USD355 million. Certain creditors will also have the opportunity to participate in the equity raise by up to an additional USD25 million at the same price as other investors.
The company said that around 74% of bondholders have now committed to supporting the restructuring plan by signing the lock-up agreement, up from around 57% when the process was launched.
Petrofac noted that under the restructuring plan, existing shareholders are now expected to be allocated 2.2% of the company's total share capital, down from 2.5% initially outlined in December.
Shares in Petrofac were down 2.8% at 6.95 pence in London on Monday morning.
By Eva Castanedo, Alliance News reporter
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Petrofac (PFC)
