Petrofac UK seeks to reach a compromise with creditors on asset sales

Petrofac, a British oilfield service provider, announced on Wednesday that its creditors would meet later this month to vote on the proposal to compromise on some of their claims in order to allow for the sale of company's Asset Solutions business.

Petrofac agreed in December to sell its business to Texas-based CB&I as a way to repay secured creditor, after months of being forced into administration by the loss?of a large contract.

The sale of the company, which provides services such as operations, maintenance, and decommissioning for energy assets, should generate between $45 million and $55 million.

Petrofac announced that creditors will meet on January 30th to vote on an arrangement called a "company voluntary" which is designed to compromise some creditor claims in order to complete the sale.

Petrofac, and CB&I (which builds tanks, storage facilities and?terminals) did not respond immediately to requests for more information on the claims.

Petrofac stated that trade creditors, employees, and other parties will not be affected by the proposal. The asset solutions business, which is still operating as usual, will also continue to operate during the process.

Petrofac - which employs a total of 8,500 people worldwide - applied in October for the administration of its ultimate holding company, after it lost a contract to Dutch firm TenneT.

The London Stock Exchange delisted the company's shares in October. Reporting by Fabiola Araburo, Mexico City. Editing by Leroy Leo

(source: Reuters)