Petrofac Ltd said Thursday it had reached an agreement in principle with Saipem SpA and Samsung E&A Co Ltd on their claims from a failed project in Thailand, which have derailed Petrofac’s financial restructuring plan.
“The commercial terms are supported by the Ad Hoc Group of Bondholders, subject to the agreement of longform documents”, the energy engineering company, now based in London after moving from Jersey, said in a brief statement on its website. “This agreement will enable the restructuring to proceed with the consent of those parties.
“The Group will now work to conclude discussions with key stakeholders on next steps towards implementation of the restructuring. It is expected that, subject to receipt of all requisite approvals and satisfaction of conditions, the restructuring will be completed by the end of November 2025 and the company will share further details as soon as appropriate to do so, in line with its disclosure obligations”.
On July 1, in favor of Saipem and Samsung E&A, the Court of Appeal set aside the High Court of Justice’s sanction for Petrofac’s restructuring. Petrofac and the two companies had been part of a discontinued project, called Clean Fuels Project, to enable the production of cleaner fuels at a Thai refinery.
Claims by Saipem and Samsung and those of other parties to the Thai project “will be compromised” under the restructuring plan, the Court of Appeal said in its decision, published on the UK judiciary’s website.
Last month Petrofac said it would apply to the United Kingdom Supreme Court for leave to appeal the reversal of the High Court’s sanction.
“The board has identified and is actively progressing a number of routes to deliver the restructuring, including through a plan that addresses the narrow grounds on which the Court of Appeal issued its judgment on 1 July 2025”, Petrofac said in a statement August 1.
Petrofac expected the restructuring plan to unlock $355 million in new funding, which would “significantly reduce the Group’s indebtedness, materially strengthening its financial position”, as per a company statement May 20.
In its statement August 1, Petrofac said bondholders, investors and creditors party to a lock-up agreement for the restructuring have agreed to extend the agreement to November.
“The agreement of stakeholders to extend the lock-up demonstrates their support for the work underway to address the narrow grounds on which the Court of Appeal upheld the challenge to our restructuring plan”, Petrofac chief executive Tareq Kawash said.
“Petrofac’s operational capability remains intact, and the business continues to deliver for its clients”, Kawash said. “We have secured new contract awards and have a strong pipeline of future opportunities”.
Petrofac reported $192 million in net liquidity as of the end of the second quarter.
“The Group has been able to maintain liquidity to support its operations, reflecting suspension of debt service payments; commercial settlements and associated collections secured as part of the close out of legacy contracts; supportive supply chain and customer relationships, and careful cash flow management”, Petrofac said.
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