Success in Round 1 of Petrofac restructuring battle to cram-down £1BN securities claim

William Day appeared for the Stewarts s90A Creditors of Petrofac at the first convening hearing for a restructuring plan under Part 26A of the Companies Act 2006, instructed by Lorraine Lanceley, Harry McGowan and Keith Thomas of Stewarts.

Petrofac is a listed (and former FTSE 100) global service provider for the energy industry. By its novel restructuring plan, Petrofac seeks to cram-down and compromise claims under s90A of the Financial Markets and Services Act 2000 which claimants say are worth upwards of £1bn for a pro rata share of a £1m settlement fund.

The securities claims were commenced after Petrofac pleaded guilty to bribery offences in 2021, which claimants say are contrary to prior statements in its published information. The Stewarts s90A Creditors are the largest of three claimant groups, with claims said to be just under £800m.

William successfully obtained an adjournment of the convening hearing and costs orders, including – in a first for restructuring plans – an order requiring Petrofac prospectively to fund the s90A Creditors’ opposition to the restructuring plan through to the end of adjourned convening hearing.

The second convening hearing has been listed for 20 March 2025, with a 3 day sanction hearing expected to be before Easter.

Adam Kramer KC, Hannah Glover and Gretel Scott are instructed for the Stewarts s90A Creditors on the underlying securities claim.