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Topic: Petroplus mentioned in the FTs Alphaville Blog

http://ftalphaville.ft.com/blog/2010/11 … efineries/

Analysts say the company could be forced to issue more shares to raise money in order to remain within the terms of its loan covenants.

Its benchmark margin “has come down rapidly in the last few weeks, and if things remain as they are, the fourth quarter will be horrible,” says one analyst who declines to be named. ”

At their third quarter results, they said they would need to hit Q1 numbers in order not to breach covenants on debt that has come due, but it is looking increasingly likely that they cannot avoid breaching loan terms.”

The company would be able to free up about $150 million in cash if it succeeded in agreeing with the French unions to convert its low-margin Reichstett refinery into a terminal, but that is unlikely to happen before January, the analyst says.

  • Registered: 2008-12-17
  • Posts: 136

Re: Petroplus mentioned in the FTs Alphaville Blog

Petroplus Holdings AG (SIX: PPHN) today announced that approximately $1 billion in uncommitted lines under its Revolving Credit Facility have been frozen by the lenders under that facility. These lines are critical to allow the company's operating units to meet their obligations when due.

  • Registered: 2008-12-17
  • Posts: 136

Re: Petroplus mentioned in the FTs Alphaville Blog

10:34 (Dow Jones) Remember Petroplus? Europe's one-time largest refiner that plans to file for insolvency? The market already looks to be shrugging off that news. Crack spreads are little changed in the wake of the bankruptcy announcement, perhaps surprising given the coming disappearance of refining capacity. Standard Bank points out that demand for refined fuels, however, is weak in Europe anyway given the region's debt woes. At the same time, the company had already idled refineries. The global refining sector, battered by weak demand, could start to look favorable by the end of the year, says Barclays: "Among products, RBOB gasoline is likely to benefit the most." Front-month February RBOB recently trades down 0.2% to $2.7737/gallon.