Switzerland: Petroplus Prepares for Insolvency
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Tuesday, 24 January 2012 |
European refinery Petroplus has confirmed that the company will file for insolvency proceedings. The Swiss firm, which owes $1.75bn in notes and bonds, has been in negotiations since early this year to restore a revolving credit facility that had been withdrawn by lenders.
Negotiations have been unsuccessful, however, and lenders have issues 'notices of acceleration' to Petroplus subsidiaries, beginning enforcement actions and, in the case of the company's UK assets, appointing a receiver. As a result, the company has been forced to prepare filings for insolvency or composition proceedings ('Nachlassstundung' in Switzerland) in countries where it operates.
"We have worked hard to avoid this outcome, but were ultimately not able to come to an agreement with our lenders to resolve these issues given the very tight and difficult European credit and refining markets," said Petroplus CEO Jean-Paul Vettier (pictured). "It is unfortunate to have reached the point where the executive committee and board of directors have to inform our employees," he added.
A statement issued by the firm promised further information in due course. The primary goal of Petroplus’ Board of Directors is to ensure that operations are safely shut down and to preserve value for all stakeholders," it added.
PetrolWorld 24012012
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