Oil and gas services firm Petrofac has announced plans to appoint administrators after the collapse of restructuring talks, threatening more than 7K jobs worldwide, including around 2K positions in Scotland.
The company told investors on Monday that it has applied to the High Court for administration following the termination of a major contract by Dutch electricity grid operator TenneT, which effectively ended efforts to stabilize its finances.
Petrofac said the move affects its main holding company, while trading operations will continue as the firm explores alternative restructuring or merger options with creditors. Corporate finance firm Teneo is expected to oversee the administration process.
Once valued at £6 Bn in 2012, Petrofac’s market worth has since plummeted to around £20 Mln before its shares were suspended in May amid a Serious Fraud Office investigation and volatile energy prices.
The Aberdeen-based company, which operates North Sea platforms for BP and Shell, said administrators will work with management «to preserve value, operational capability, and ongoing delivery across the group.»
