"HMRC had been seeking to recover more than £150 million from Petrofac relating to a long-running tax dispute, and had argued that the proposed debt restructuring was unfair because it would leave the tax authority with just £3 million, while other creditors stood to recover a greater proportion of their claims."
"Petrofac had warned that without swift resolution, its UK asset solutions division, which employs around 2,250 people and operates approximately 20 North Sea platforms, was at risk of running out of cash and collapsing."
"The transaction is seen as a viable route to preserve operations and employment, while providing significant debt write-offs across the group."
HM Revenue & Customs has decided not to pursue further legal action against Petrofac's restructuring deal, safeguarding over 2,000 North Sea jobs. This decision removes a significant obstacle that could have led to insolvency for Petrofac's UK operations. HMRC had previously sought to recover over £150 million from Petrofac due to a tax dispute. However, Scotland's Court of Session rejected HMRC's challenge, allowing the sale of Petrofac's UK business to CB&I to proceed, which is crucial for preserving jobs and operations.
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