Provider of services to the global energy industry Petrofac has filed for administration to the High Court of England and Wales to appoint administrators for the company, following TenneT’s decision to terminate its scope in 2 GW offshore wind grid project in the Netherlands.
Petrofac said that the move is a targeted administration of the group’s ultimate holding company only.
The decision came after the careful assessment of the impact of TenneT’s decision to terminate Petrofac’s scope of work on the 2GW program, which the company secured together with Hitachi Energy, under a $14 billion framework agreement.
Petrofac’s scope included the engineering, procurement, construction, and installation (EPCI) of offshore platforms and elements of the onshore converter stations.
The company received notification from TenneT earlier in October, terminating its scope of work on the 2GW program with immediate effect.
At the time, Petrofac’s board determined that the company restructuring, which had already reached an advanced stage, will no longer be deliverable in its current form.
According to Petfrofac, 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.
Petrofac also retains the support of its RCF and Term Loan lenders who continue to extend maturities on a rolling basis.