Petrofac has unlocked more than £250million in new funding to secure its long-term future and mark a "new beginning".
The global energy services giant has announced fresh investment this morning, alongside a binding agreement with creditors on the terms of a comprehensive financial restructuring plan.
The announcement, just days before Christmas, puts an end to the company's long-running financial worries stemming from a share price collapse a year ago.
The $325million (£258.68million) in new funding consists of $131million (£104.27million) in new debt and $194million (£154.41million) in new equity.
René Médori, chairman, said: “We are pleased to have announced today a deal with creditors and other stakeholders which will materially strengthen Petrofac’s financial position.
"We recognise the demands that this process has placed on the group’s stakeholders, each of whom is playing a vital role in delivering this critical step for the business.
"I would once again like to thank our shareholders, clients, creditors and employees – we will continue to depend on your support over the coming weeks as we implement the agreement and deliver Petrofac’s future growth potential.
“The financial restructuring will mark a new beginning for Petrofac. I look forward to overseeing the conclusion of this process with a view to transitioning my board duties to a new chairperson in 2025.”
Tareq Kawash, group chief executive, said: “The agreement announced today will provide a sustainable financial structure that will support our business plan and allow the group to move forward with confidence.
"Bolstered by our current backlog and pipeline of opportunities, the business is well positioned as a leading provider of critical energy infrastructure. We have made good progress in closing out our legacy portfolio of contracts, our new projects are progressing well, we have a refreshed strategy focused on our strengths, with enhanced bidding discipline and project governance.
“I am grateful to our stakeholders for coming together as part of the Lock-Up Agreement to deliver these stronger foundations for the future and look forward to leading our exceptional team in pursuit of future successes.”
The restructuring, subject to all requisite approvals and satisfaction of conditions, is expected to be complete in Q1 of 2025.