Petrofac has issued an unscheduled market update warning of fresh uncertainty around the timing and deliverability of its long-running restructuring plan.
In a short statement issued this mroning the energy services group said “a change in circumstances relating to certain stakeholders” had affected progress on a key agreement that was due to underpin the company’s restructuring.
Urgent discussions are now underway, with Petrofac promising further details “when it is able to.”
The update comes just three days after the UK Court of Appeal overturned Petrofac’s previously sanctioned restructuring plan, ruling that it unfairly favoured new investors at the expense of existing shareholders.
The appeal, brought by Samsung and Saipem, found that the proposed deal over-allocated value to new-money investors while leaving current shareholders “effectively wiped out.”
The Court’s decision struck down the High Court’s earlier approval of the twin restructuring package, which aimed to inject $350 million of new capital, reduce debt, and reallocate equity.
The appeal judgment held that Petrofac had failed to demonstrate that the returns promised to new investors were appropriately benchmarked to market conditions.
Petrofac had previously told investors it was working to complete the restructuring by the end of November, with several potential implementation routes under consideration – some of which could result in no residual value for existing shareholders.