Petroplus 'to file for insolvency'

By Neal Wallace

Petroplus, the Swiss oil refiner, has said that it will file for insolvency after it failed to reach a deal with creditors to extend loan repayment deadlines.

Shares in the firm, which is the largest independent oil refiner in Europe and owns the Coryton oil refinery in Essex, were suspended on Monday (January 23rd). The company has said it would make the filing "as soon as possible".

According to the BBC, Petroplus had its credit lines frozen by lenders in December last year. Standard and Poor later downgraded the company's credit rating over fears over it was defaulting on its debt.

Petroplus chief executive Jean-Paul Vettier said that the firm had tried not to reach this outcome but "given the very tight and difficult European credit and refining markets" it was inevitable.

"We are fully aware of the impact that this will have on our workforce, their families and the communities where we have operated our business," he added.

East of England MEP Richard Howitt warned last year that more than 1,000 jobs at Coryton could be at risk because of the problems at Petroplus.