Petrofac has extended an agreement regarding the non-payment of interest on its senior secured notes as its financial troubles continue.
The London-listed provider of services to the energy industry said this morning that the forbearance agreement was entered into by a group of noteholders representing around 47% of the outstanding senior secured notes.
The company said the agreement will give it more time to progress its financial restructuring aimed at strengthening its balance sheet, and ensures relevant noteholders won't take any action in respect of non-payments until at least October 18th.
Shareholders will hear a fuller update later this morning as the firm holds its Annual General Meeting (AGM).
The company, which employs 8,500 people worldwide, saw a collapse in its stock price of nearly 70% over the last few months.
Despite a run of contract awards, investor concerns have emerged around cash flow and profitability as debt and delayed collections on legacy contracts weigh it down.
In April, the company was forced to temporarily suspend trading in its shares due to a delay in the delivery of it full year report for 2023.
It has been struggling with its debt load in the wake of loss-masking contracts and prior corruption scandals.