Petrofac has initiated a Company Voluntary Arrangement (CVA), a UK insolvency process for negotiating debt repayment with unsecured creditors, as a final step to enable the completion of the sale of its Asset Solutions business to CB&I. The CVA is intended to compromise certain creditor claims, while trade creditors, employees, and certain other parties remain unaffected.

Background and Sale Context

The move follows Petrofac's entry into administration in October after a restructuring plan collapsed, a situation triggered by Tennet's termination of a major offshore wind contract. Subsequently, the company explored M&A options, leading to the December announcement of the sale to US-based CB&I. The transaction, anticipated to close in Q1 2026, is expected to see approximately 3,000 Petrofac employees transfer to CB&I.

Process and Creditor Vote

Approval of the CVA is a mandatory condition for the sale's completion. Petrofac is strongly encouraging all eligible creditors to vote in favour of the proposal, emphasizing that operations will continue normally throughout the process, with the Asset Solutions business serving customers and working with suppliers as usual.

Business Profile of Divisions

Petrofac's Asset Solutions division focuses on managing and maintaining client energy infrastructure, delivering small to medium-scale engineering, procurement, and construction projects, and providing concept and design services for both traditional hydrocarbon and energy transition markets. The acquirer, Texas-headquartered CB&I, specialises in designing and building storage facilities, tanks, and terminals and is owned by a consortium of financial investors led by Mason Capital Management.