Greater than 2,000 Scotland-based jobs are in danger as oil and vitality companies group Petrofac has utilized for administration.
The group’s operations will proceed to commerce, and choices for restructuring of the corporate and a potential merger or acquisition are being actively explored with its key collectors, the corporate mentioned on Monday.
Individuals near the corporate say they’re hopeful a purchaser may be discovered swiftly for its North Sea operations, with one suggesting that it might even occur within the coming days.
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Directors will work alongside firm administration to “preserve value, operational capability and ongoing delivery”, its announcement learn.
Power Secretary Ed Miliband and different ministers have been briefed on the scenario.
Not a fantastic begin to the week for Ed Miliband, although reduction might come
It isn’t the begin to the week that Ed Miliband, the vitality secretary, would have been hoping for: greater than 2,000 personal sector jobs in Scotland in danger from the collapse of Petrofac, the London-listed oilfield companies group.
Its slide into insolvency was triggered by final week’s cancellation of a serious contract by its largest buyer, however the failure of an organization as soon as valued at greater than £6bn has been a very long time coming.
Directors at Teneo will now try and salvage what they’ll from Petrofac’s wreckage.
For hundreds of workers, the longer term is now unsure, though folks near the corporate say they’re hopeful {that a} purchaser may be discovered swiftly for its North Sea operations, with one suggesting that it might even occur within the coming days.
That will be a reduction to Mr Miliband, whose vitality coverage has come below rising scrutiny in latest months amid dire warnings about the way forward for Britain’s offshore oil trade.
An advisory agency, Kroll, had been engaged by the Division for Power Safety and Web Zero to work with ministers and officers on the unfolding disaster for the corporate.
What’s Petrofac?
Petrofac employs about 7,300 folks globally, based on a latest inventory change submitting.
It designs, constructs and operates offshore gear for vitality corporations.
The corporate has been valued at greater than £6bn however has been fighting debt.
It additionally confronted a Severe Fraud Workplace investigation, which resulted in a 2021 conviction for failing to stop bribery, and the fee of thousands and thousands of kilos in penalties.
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Based in 1981 in Texas, the enterprise has been in talks a couple of far-reaching monetary restructuring for greater than a 12 months.
A proper restructuring plan was sanctioned by the Excessive Courtroom in Might this 12 months with the goal of writing off a lot of its debt and injecting new money into the enterprise.
This was subsequently overturned, prompting talks with collectors a couple of revised settlement.
