Troubled Swiss oil refiner to file for bankruptcy

Troubled Swiss oil refiner Petroplus today announced that it will file for insolvency after talks to re-open a frozen credit line were unsuccessful.

Lenders have served the UK subsidiary Petroplus Marketing AG with a notice of acceleration and appointed a receiver for the UK company after talks to re-open a $1 billion revolver which was frozen in December 2011 failed.

This constitutes an event of default on the $1.75 billion in senior notes and convertible bonds issued by the parent company, which has said it will file for insolvency in Switzerland as soon as possible.

This will be the largest European bankruptcy since Thomson filed for sauvegarde in December 2009.

The company's 7% bonds maturing in 2017 traded at 45.5 cents in the dollar yesterday having trading at 80 at the start of November 2011, while the 9.375% 2019 bonds have fallen from 86 to 45 cents in the same period.