Petrofac shares plummet on debt restructuring talks

Petrofac shares dive as debt talks could see creditors become owners.

Petrofac (LSE: PFC) shares plunged over 25% on Friday morning after the company revealed it was in discussions regarding a major debt restructuring. The talks could result in a significant portion of Petrofac’s debt being swapped for an ownership stake in the company.

Petrofac stated the discussions focus on restructuring its debt to free up capital to support ongoing operations and recent contract wins. The oil and gas services company is also exploring potential investments from new shareholders and considering the sale of non-core assets to improve its liquidity.

In December, Petrofac announced a year-end debt forecast modestly exceeding $584 million, its June debt figure, due to increased collateral requirements for guarantees.

Petrofac said Friday it is working on managing its debts and securing guarantees for new contracts. This will ensure they have the financial resources to deliver on their current projects, valued at $8 billion.

Petrofac’s shares have plummeted 60% year-to-date.

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