Petrofac Limited (LSE:PFC) shares fell more than 20% in Friday’s early deals after it updated investors on ongoing strategic and financial restructuring efforts.
The company is currently engaged in discussions with its lenders to convert a significant portion of its debt into equity.
At the same time, it is in talks with prospective investors and certain major shareholders about potential further investments.
Petrofac is also mulling the sale of non-core assets in a strategic review.
“Management and the board are focussed on managing the group’s payment obligations and delivering a solution which supports the provision of guarantees required for its recent contract awards, and which ensures that Petrofac has the appropriate capital structure and liquidity to support the strength of its US$8 billion backlog,” the company said in a statement.
“While the company continues to face challenges in securing new performance guarantees, it is progressing discussions with credit providers and clients to find solutions with respect to the guarantees required for its recent contract awards.”
Further announcements are expected as the negotiations with lenders and other stakeholders progress.