Petrofac Extends Forbearance Agreement Amid Financial Restructuring

Petrofac Limited has announced an extension of its forbearance agreement regarding the non-payment of the interest coupon on its senior secured notes. Initially set for 18 October, the agreement is now extended to 15 November 2024. This decision involves an ad hoc group of noteholders, representing about 47% of the outstanding notes and certain other acceding noteholders.

The company is actively engaging with creditors, key clients, and stakeholders to complete due diligence and finalize the terms of a proposed financial restructuring. Petrofac plans to announce a lock-up agreement in the coming weeks. Despite the situation, the company manages its financial obligations, including those related to its revolving credit facility and term loans, which are not expected to be settled by their maturity on 25 October 2024.