Petrofac again extends deadline for missed interest payments

Shares in Petrofac rose on Monday after the energy infrastructure services group secured yet more additional time with its bondholders to make its interest payment obligations.

Petrofac said it had extended its existing forbearance agreement in respect of the non-payment of the interest coupon on its senior secured notes from 20 September to 18 October.

The company which had a net debt position of $583m at the end of 2023, has already extended the forbearance agreement a number of times over the summer. At the time of its full-year results in May, the company said it was continuing to rely on deferrals of contractual amortisation payments from its lending banks to stay afloat.

"The forbearance agreement is entered into by an ad hoc group of noteholders representing approximately 47% of the outstanding senior secured notes and certain other acceding noteholders," Petrofac said in a statement.

The extension means that bondholders have agreed not to take action in respect of the non-payment until at least mid-October, allowing the company with additional time to progress with its financial restructuring.