Petroplus Refining and Marketing Limited - in administration - Update from the joint administrators

abarrelfullabarrelfull wrote on 06 Mar 2012 07:18
Tags: petroplus refinery uk

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The joint administrators of PRML, which owns and operates the oil refinery at Coryton Essex, have issued their proposals to the company’s creditors. The proposals set out the actions the administrators have taken to date and the manner in which they are seeking to restructure the company.

The report identifies that the company has over $2.3 billion of creditors, including $1,750 million in relation to guarantees of four public note issues by other companies in the Petroplus group. The company’s assets include the oil refinery at Coryton, held at a book value of $1.3 billion and approximately $250 million of accounts receivable, mainly from other Petroplus companies across Europe, which are also in insolvency proceedings.

If a refinancing and restructuring is not possible the administrators have informed creditors that they are also exploring a sale of the refinery and closure as alternatives.

Two meetings have been announced at which the joint administrators will outline the current position of the company, its options and intentions going forward. The first meeting, with the holders of $1,750m of convertible bonds and senior notes is to be held on 12 March 2012 and the second meeting, for all the creditors of PRML will take place on 21 March 2012.

Steven Pearson, joint administrator and PwC partner said:

“Significant progress has been made since our appointment in creating short-term stability at the refinery. We have now gained a comprehensive understanding of the financial position of the company. To continue operations at the refinery in the medium-term the company will need some $1 billion of new financing and will need the support of its creditors as part of a wide-reaching financial and operational restructuring.

At the upcoming meetings PRML’s creditors will get the opportunity to understand the challenges associated with refinancing and restructuring the company, together with the other options being explored.”

Steven Pearson and Stephen Oldfield were appointed by the High Court of Justice as joint administrators to PRML on 24 January 2012.

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