Linklaters and SNR Denton lead on Petroplus administration

Linklaters and SNR Denton have picked up lead advisory roles on the administration of UK-based Petroplus Refining & Marketing.

Both firms have been retained by PricewaterhouseCoopers (PwC) joint administrators Steven Pearson and Ian Green to advise on the administration.

Corporate partner Chris Howard in leading the Linklaters team, with global restructuring and insolvency co-head Nigel Barnett leading SNR Denton’s mandate.

It is understood that Clifford Chance had been pre-appointed to act for Petroplus, but is no longer involved in the administration proceedings. A firm is yet to be instructed.

On Monday Petroplus said negotiations with creditors on its $1.75bn credit line had failed and subsequently its parents company announced that it would file for insolvency in Switzerland, with subsidiaries filing for insolvency in their respective countries.

PRML, which owns a refinery in Coryton, Essex and Petroplus Refining Teeside, which owns the Teeside Marketing and Storage facility, applied for and were granted administration orders.

The Coryton refinery halted sales earlier this week but administrators announced today that oil product deliveries would commence “with immediate effect” following an overnight deal.

The Essex-based plant, bought by Petroplus from BP in 2007, supplies 20 per cent of the fuel supply for the south east of England and indirectly employs 1,000 people.