European Refiner Petroplus to File for Bankruptcy (BP, RDS-A)
Europe’s largest independent oil refiner, Swiss-based Petroplus Holdings AG, is preparing to file for bankruptcy. At the end of December, a consortium of banks cut off the $1 billion line of credit Petroplus used to finance crude oil purchases. BP…
Europe’s largest independent oil refiner, Swiss-based Petroplus Holdings AG, is preparing to file for bankruptcy. At the end of December, a consortium of banks cut off the $1 billion line of credit Petroplus used to finance crude oil purchases. BP plc (NYSE: BP) and Royal Dutch Shell plc (NYSE: RDS-A) have already closed refineries in Europe due to lack of demand for refined products.
The bankruptcy filing follows a demand from the refiner’s banks to accelerate payment of $1.1 billion on the company’s revolving credit account. The revolver’s interest rate was set at 3 points above Libor, which has been below 1% for the past year.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
