Member Info for bricktycoon12

It's as good as certain IMHO that it will be in Administration as of Monday. The restructure was a very long shot and depended on forward-looking contracts, the largest of which has been cancelled. Very sad news and I hope the jobs can be saved as the goodwill and assets get sold in Administration. No winners in this at all. Please DYOR but this share has been suspended for months and and the financials are beyond overdue so it's no surprises here.

The two creditors who successfully overturned oil and gas group Petrofac’s Part 26A plans have won £2 million for their legal and financial advisory fees (from Petrofac) https://globalrestructuringreview.com/article/court-of-appeal-issues-petrofac-costs-judgment-part-26a-affordability-concerns-raised-again

I'm not surprised this is being fought by Saipem & Samsung:

"Oil services firm Petrofac Ltd appeared in a London court on Wednesday seeking approval for a financial restructuring it says will rescue the company from insolvency. The plan is being challenged by Saipem Spa and Samsung E&A Co Ltd, who are Petrofac Group’s joint-venture partners in the Clean Fuels Project, an engineering project in Thailand. *They argue the plan will cause them to assume upwards of $1 billion of Petrofac’s liabilities*, court documents show. The also argue the plan will transfer that value to various hedge funds who will make “significant profits,” from the restructuring and then further damages..

https://news.bloomberglaw.com/bankruptcy-law/petrofacs-debt-restructuring-proceedings-start-in-london-court

They are in default as payment has not been made since 15th May 2024. Now, 47% (41%) of the bondholders have agreed not to take action until September. Yes, you are right. The remaining bond holders could take action, but it requires them to start the action. So far, this hasn't happened.

They aren't paying their bondholder and 47% of this group have said that they won't take action at least until 20th September, so less than a month's reprieve. Where is the information regarding "paying the debt down"?

"The moment they are trading at a loss they must enter into insolvency. That is the legal position." - it's not great, but plenty of companies trade at a loss; that doesn't make them insolvent if they can pay their liabilities as they fall due. In this case, it's that they can't pay for their liabilities as they fall due (bondholders, trade creditors, bank interest servicing) and unless they can restructure to reduce their liabilities, their prospects are bad.

The alternative for debt for equity is a takeover (offer for all-share purchase by another business "takeover"), bankruptcy, or liquidation. There are no other options.