Petrofac Urges Creditors to Agree ‘Compromise’ to Clear CBI Sale

Petrofac on Wednesday called on certain creditors to sign a “voluntary arrangement” regarding their claims, to allow the British energy engineering company to proceed with a recent agreement to sell its Asset Solutions business to CB&I.

Petrofac said in an online statement it has scheduled a meeting of Petrofac Facilities Management Ltd’s creditors on January 30 for a vote on “a proposed Company Voluntary Arrangement (CVA) related to the sale”.

“The CVA is intended to compromise certain creditor claims to enable the completion of the sale”, the statement said. “Trade creditors, employees and certain other parties are not affected by the CVA.

“Operations will continue as normal during the CVA process and Asset Solutions will continue to serve its customers and work with suppliers as usual”.

Petrofac did not disclose the terms of the voluntary arrangement.

“The agreed sale of Asset Solutions to CB&I is a strong outcome for the business and for around 3,000 colleagues who are expected to move across on completion”, said John Pearson, chief operating officer for Petrofac’s Asset Solutions business. “After more than two years of restructuring, this CVA is the final step to deliver that outcome, and we are asking creditors to support it so the sale can complete”.

Petrofac and CB&I, a maker of storage facilities, tanks and terminals, announced their agreement December 24, 2025.

“The consideration for the sale has been agreed on a debt-free cash-free basis”, Petrofac said then. “The ultimate net proceeds from the transaction will depend on the quantum of various deductions which will only be confirmed closer to completion. However, the administrators of the company expect the net proceeds to be in the range of $45m to $55m”.

“The net proceeds will be distributed to the secured creditors in accordance with the intercreditor agreement entered into between the company and the secured creditors on 26 October 2021”, Petrofac added. 

“Completion of the transaction is subject to certain conditions including approval from certain secured and unsecured creditors of the Assets Solutions business which is currently expected to be obtained by end of January 2026”, it said.

“Petrofac continues to advance options for alternative restructuring and M&A solutions with respect to Petrofac Emirates, its UAE-based operating division, focused on engineering and construction activities in the UAE and internationally”, Petrofac added.

On October 23, 2025 Petrofac announced the end of its “advanced stage” restructuring after European grid operator TenneT terminated Petrofac’s scope under a March 2023 contract for six connection projects on the Dutch and German sides of the North Sea, each with a two-gigawatt capacity.

On October 27, 2025 Petrofac said it had applied for administration before the High Court of England and Wales. “This is a targeted administration of the Group’s ultimate holding company only [Petrofac Ltd]”, Petrofac said.

“The Group’s operations will continue to trade, and options for alternative restructuring and M&A solutions are being actively explored with its key creditors, including the Ad Hoc Group of Noteholders, who are supporting the Group with continued forbearance arrangements whilst alternative options are explored. The Group also retains the support of its RCF and Term Loan lenders who continue to extend maturities on a rolling basis.

“When appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the Group’s operating and trading entities”.

On October 28, 2025 Petrofac halted trading on the London Stock Exchange after entering into administration.

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