Petrofac enters into binding agreement with creditors on restructuring terms

Petrofac said it had entered into a binding agreement with key financial creditors on the terms of a comprehensive restructuring "to significantly strengthen the financial position of the group" and enable it to deliver its strategy.

The restructuring will deliver at least $325m of new funding to the group.

After repayment of certain obligations, including payments required to extinguish certain historical claims and contingent liabilities, and payment of transaction costs, this will result in an immediate increase in liquidity of at least $195m, Petrofac said.

Chief executive Tareq Kawash said: "The agreement announced today will provide a sustainable financial structure that will support our business plan and allow the group to move forward with confidence.

"Bolstered by our current backlog and pipeline of opportunities, the business is well positioned as a leading provider of critical energy infrastructure. We have made good progress in closing out our legacy portfolio of contracts, our new projects are progressing well, we have a refreshed strategy focused on our strengths, with enhanced bidding discipline and project governance.

"I am grateful to our stakeholders for coming together as part of the lock-up agreement to deliver these stronger foundations for the future and look forward to leading our exceptional team in pursuit of future successes."