Petrofac Limited (LSE:PFC) shares fell 2% as it provided an update on its financial restructuring plan, outlining key developments in court proceedings and an expected $355 million of funding, as more bondholders support the plan that is now expected to leave existing shareholders with just 2.2% of the shares.
With a convening hearing scheduled for this Friday, 28 February, and a sanction hearing set for 26 March, the restructuring is expected to become effective around 31 March.
The planned equity raise has been increased by US$30 million to US$224 million, the energy services company said, meaning the restructuring is expected to reach a total of US$355 million, with some creditors also taking the opportunity to participate in the equity raise by up to US$25 million on the same terms.
On completion of the restructuring, existing shareholders are expected to receive 2.2% of the company’s total share capital, down from the 2.5% outlined previously.
Bondholder support has grown, with 73.7% now committed to the restructuring plan, an increase of 16.7% since the plan was launched.
The company said it has secured agreements with "financial investors" for the release of US$80 million in cash collateral to support a performance bond for a key engineering and construction (E&C) contract, replacing an arrangement announced in December.
At 7.01p, the shares are not far off their all-time lows reached in recent weeks.