Administrators have been able to secure the short term future of the Essex oil refinery that had temporarily been shut after its owner had filed for insolvency.
The refinery, based in Coryton was formerly owned by Swiss firm Petroplus but has since fallen into administration with debts of around $1.75 billion. Administrators PricewaterhouseCoopers (PwC) have found an agreement with a consortium of financiers guaranteeing its future for the next three months, allaying the fears 1000 workers and contractors and avoiding a total shut down of the site.
The consortium comprises of the bank Morgan Stanley, KKR Asset Management and Atlas Invest and the deal they have agreed will see the refinery supplied with crude oil for the next quarter allowing the site to operate as usual without further interruption. However, all of the refined products will be owned by the consortium rather than the refinery itself.
The three month deal also grants PwC more time to find a permanent solution such as finding a new owner for the plant or looking at refinancing options.
Steven Pearson, joint administrator at PwC said 'This agreement is the culmination of constructive negotiations over many days and it creates vital stability at the refinery whilst we find a restructuring solution.
'We now look forward to working with MSCGI, KKR and Atlas over the coming weeks and months to jointly ensure all long-term options are examined.
'This collaborative approach has been central to ensuring this arrangement could be concluded so quickly in very difficult circumstances.'
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