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Oil and gas service firms petrofac is set to appoint administrators, putting thousands of jobs at risk across its global operations.
The company, which employs more than 7,000 people worldwide, including approximately 2,000 north sea in the hub scotlandconfirmed its application on high court On Monday.
The significant development follows the complete collapse of restructuring talks, which faltered last week after a key contract was unexpectedly withdrawn.
petrofac Said it will now enter bankruptcy proceedings dutch Tenet, the electricity grid operator, concluded a key agreement to build wind farms.
The firm stressed that the administration would particularly affect the group’s main holding company.
It will continue to assess the business and options for alternative restructuring, with its major creditors also exploring various merger and acquisition options.
Advisors from corporate finance firm Teneo are expected to advise on governance.
“Once appointed, the administrators will work with executive management to preserve value, operational efficiency and ongoing delivery across the group’s operating and business entities,” the company said.
petrofacThe business of is based in the UK aberdeen and is involved in the operation of north sea Oil Platform for companies including BP and Shell.
At its peak in 2012 the company was worth around £6 billion but has declined in recent years.
It was worth around £20 million when its shares were suspended in May after being seriously affected by the investigation Serious Fraud Office and volatile energy prices.