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

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Europe Video

  • Steve Pollard of Marex Spectron says coffee shipments from Brazil have been higher than expected, due to previous years' surpluses.

  • Every time the oil price looks positive or stable "out comes something negative," says Richard Mallinson, analyst at Energy Aspects.

  • Russia has been dominating the news recently and its economy is not looking good. Anastasia Nesvetailova, director at City University's political economy research centre explains more.