Petroplus Coryton refinery 'needs deal by mid-May or risks closure'

25 April 2012 16:07  [Source: ICIS news]

LONDON (ICIS)--Petroplus’s refinery in Coryton in the UK is at “real risk” of closure if a deal is not agreed by mid-May, the company’s administrator said on Wednesday.

PricewaterhouseCoopers (PwC) received bids for the refinery – which is located 28 miles (48km) from central London in Essex – on 2 April and said a deal could involve refinancing, a sale or an extension of its tolling agreement. 

PwC partner Steven Pearson, the joint administrator, said: “If we don’t do a deal by mid-May there is a very real risk that the refinery will be closed.”

In February, PwC signed a tolling agreement involving a collaboration of investment firms, including Morgan Stanley Capital Group Inc and AtlasInvest.

Under the tolling agreement, crude oil has been delivered to the 220,000 bbl/day refinery for processing for an initial period of three months, which ends in May.

In March, Petroplus administrators in Belgium agreed to sell the company’s 107,500 bbl/day refinery in Antwerp to oil trader Gunvor.

Petroplus said in January it was to file for insolvency, after lenders froze about $1bn (€760m) in credit lines in December 2011.

($1 = €0.76)

By: Leigh Stringer
+44 208 652 3214

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