UK energy services company Petrofac has filed for administration following TenneT’s decision to terminate an offshore wind contract.
Petrofac said on Monday that it had “carefully assessed its options” and the impact of TenneT’s contract cancellation.
The company had determined that the best course of action was to apply to the High Court of England and Wales to appoint administrators to Petrofac Limited, the group’s holding company. Restructuring group Teneo is being mentioned as the most likely administrator.
It is estimated that around 2,000 direct jobs are at risk, most of them in Scotland. However, many more will be under threat in the company’s supply chains and partners.
Last week, the UK firm revealed that the loss of the TenneT contract meant that its restructuring plan was “no longer deliverable in its current form”. The troubled contractor has had its shares suspended from the London Stock Exchange since 2024.
“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 explained.
The company also has the support of its RCF and term loan lenders, who will extend maturities on a rolling basis.
