(Alliance News) - Petrofac Ltd on Friday said it engaged in discussions in regard to restructuring its debt, with "all options" remaining under consideration.
Shares in the energy infrastructure company with core markets in the Middle East and North Africa fell 30% to 23.28 pence each on Friday morning in London.
Petrofac said its discussions revolve around restructuring debt in a way that would result in a significant proportion of the debt being exchanged for a stake in the company.
Further, it is in talks with prospective investors and major shareholders for a potential investment in the company, including a potential sale of non-core assets.
In December, the company announced that its year-end debt is expected to be modestly higher than the debt of USD584 million it had posted for the end of June, citing an increase of over USD100 million in collateral for guarantees.
Petrofac said Friday: "Management and the board are focussed on managing the group's payment obligations and delivering a solution which supports the provision of guarantees required for its recent contract awards, and which ensures that Petrofac has the appropriate capital structure and liquidity to support the strength of its USD8 billion backlog.
"While the company continues to face challenges in securing new performance guarantees, it is progressing discussions with credit providers and clients to find solutions with respect to the guarantees required for its recent contract awards."
By Tom Budszus, Alliance News slot editor
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Petrofac (PFC)