Tolling arrangement allows refinery to continue normal operations as search for buyer continues.

The joint administrators of Petroplus Refining & Marketing Limited (PRML) have announced the signing of a tolling agreement involving a collaboration between Morgan Stanley Capital Group Inc. (MSCGI), KKR Asset Management, LLC, and AtlasInvest.

Under the tolling agreement, crude oil will be delivered to the Coryton refinery for processing for an initial period of three months. This arrangement allows the refinery to continue to operate as usual whilst the feasibility of a permanent solution for the refinery is explored. Options being explored include a sale of the business and refinancing.

Steven Pearson, joint administrator and partner at PwC says: “I am delighted to have reached this arrangement. It 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.”

“I would also like to personally thank the customers, suppliers, employees, union, subcontractors, management and the PwC and legal teams for their constructive approach in allowing us to reach this agreement. This collaborative approach has been central to ensuring this arrangement could be concluded so quickly in very difficult circumstances.”