Jan 14 (Reuters) - British oilfield services provider Petrofac said on Wednesday its creditors will meet later this month to vote on a proposal requiring them to compromise some of their claims in
Petrofac Proposes Creditor Compromise to Facilitate Asset Sale
Petrofac's Creditor Arrangement Proposal
Jan 14 (Reuters) - British oilfield services provider Petrofac said on Wednesday its creditors will meet later this month to vote on a proposal requiring them to compromise some of their claims in order to allow the sale of the company's asset solutions business.
Petrofac in December agreed to sell the business to Texas-based CB&I to repay secured creditors, months after the loss of a major contract forced its holding company into administration.
The sale of the business, which provides operations, maintenance and decommissioning services for energy assets, is expected to generate proceeds of $45 million to $55 million.
Details of the Asset Sale
Creditors will meet on January 30 to vote on a so-called company voluntary arrangement that is intended to compromise certain creditor claims to enable the completion of the sale, Petrofac said, without giving further details on the claims.
Petrofac and CB&I, which builds storage facilities, tanks and terminals for energy projects, did not immediately respond to Reuters' requests for details on the claims.
Impact on Operations
Trade creditors, employees and other parties are not affected by the proposal and operations of the asset solutions business will continue as normal during the process, Petrofac said.
Background on Petrofac's Challenges
Petrofac, which employs 8,500 workers globally, in October applied for administration of its ultimate holding company after losing a major contract with Dutch firm TenneT.
The company's stock was delisted from the London Stock Exchange in October.
(Reporting by Fabiola Arámburo in Mexico City; Editing by Leroy Leo)
