Petrofac (LON: PFC) has extended its existing forbearance agreement on a missed interest payment with a group of lenders from 20 September to 18 October 2024.
It comes after months of financial troubles for the oilfield services giant, which received a previous extension in August.
Ratings agency Fitch also downgraded Petrofac in June after the firm defaulted on an interest payment.
In May, the debt-laden company reported a $505 million net loss in its delayed full-year financial results for 2023. At the time, Petrofac said it is continuing to pursue non-core asset sales in its attempts to stay afloat.
Petrofac has been struggling with rising debt, having missed a 30-day grace period on a coupon that was supposed to be paid 15 May on $600m loan notes due in 2026.
This saw the company miss the deadline to deliver its full year report for 2023, resulting in a temporary suspension of trading in its shares.
Petrofac is seeking a financial restructure to improve liquidity and secure bank guarantees to support current and future contracts, and is in talk with lenders to see some of the debt swapped for equity.
An ad-hoc group of senior secured noteholders previously proposed providing further credit to the business of up to US$300mn.
However, the company has managed to hold its revenues steady, coming in at $2.5 billion in 2023 compared to 2022’s $2.6bn. It has also been successful in securing major contracts to grow its order book and create the promise of future returns.
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