UK Court Approves Petrofac Debt Deal Backed by US Hedge Funds

A UK court approved Petrofac Ltd’s restructuring plan, staving off insolvency for the energy-services company that has been embroiled in a legal battle over the proposals for months.

The London judge sanctioned a plan backed by investors including US hedge funds Mason Capital Management and Nut Tree Capital Management. He dismissed objections brought by Saipem Spa and Samsung E&A Co Ltd., two of the firm’s joint-venture partners, who claim they will be saddled with around $1 billion of liabilities.

The judgment, which can be appealed, paves the way for at least $350 million of fresh funding to ...