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Petrofac Lines Up Teneo for Administration With Decision Expected Monday

TenneT's cancellation of a major order left a solvent restructuring unworkable, propelling the company toward court-appointed oversight.

Overview

  • Directors have prepared an administration process with Teneo and could file before markets open on Monday, according to multiple reports.
  • Petrofac disclosed that the loss of its largest customer TenneT's contract meant the near-final rescue plan was no longer deliverable.
  • The Department for Energy Security and Net Zero has engaged Kroll to advise as ministers, including Energy Secretary Ed Miliband, received briefings.
  • More than 2,000 Scottish roles are at risk within a global workforce of about 7,300, though a source said the UK arm has no lossmaking contracts and the parent company would be the entity placed into administration.
  • If insolvency proceeds, a break-up with assets and key contracts transferring to other operators is expected, against a backdrop of suspended shares, an overturned May restructuring plan and prior SFO penalties.