GO
Loading...

Petroplus Gets Provisional Financing, Shuts French Plant

Embattled Swiss-based oil refiner Petroplus has obtained a provisional financing agreement with its lenders while they negotiate a solution to keep the debt-laden group afloat, a source close to the matter said on Friday.

Oil refinery
Oil refinery

"A provisional financing agreement has been found to keep the talks going," the source told Reuters.

Petroplus's future has been thrown into doubt since it revealed on Tuesday that lenders had frozen a $1 billion credit facility the company relies on to buy crude oil.

Petroplus said on Friday this would force it to shut down its Petit Couronne refinery in France, which employs 550, as crude oil supplies run out.

"There is no more crude coming in so the plant cannot work anymore so we need to shut the plant on Monday or Tuesday, but this is a technical shut down," a Petroplus spokeswoman said.

"The plant's units will be mothballed so that they can be restarted quickly when crude supplies come back."

Contact Europe News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Europe Video

  • A yes vote in the upcoming Scottish independence referendum could lead some insurers to move their headquarters to London, says Mark Nicholson, associate director at Standard & Poor's Rating Services.

  • The U.S. Federal Reserve remains data dependent and will not bow to hawks, says Mark Haefele, global chief investment officer at UBS, as Janet Yellen continues to make the argument that there is slack in the labor market.

  • European shares closed lower on Friday as tensions in Ukraine flared up once again. It comes after stocks fluctuated as U.S. Federal Reserve Chair Janet Yellen spoke about the labor market in Jackson Hole, Wyoming.