The UK fuel cards industry is in a state of shock with the recent announcement of Petroplus going in to file for insolvency in the country. The company is Europe’s largest independent oil refiner and currently provides employment to 500 people and another set of 350 contractors.
Petroplus’s impending failure has put a shade of cloud over UK’s biggest oil refining company Coryton, since it is owned by Petroplus.
With trans-national presence in Europe, Petroplus’s insolvency will put at risk the employment continuity at companies’ geographically spaced out facilities in UK, France, Switzerland, Germany and Belgium. It is yet not clear if Petroplus could eventually be bailed out after State’s intervention. Given the magnitude of operations and the likely impact on European oil refining operations, it is likely that we may see a State intervention at some point of time.However, it is clear that the lenders are not willing to make any exceptions this time and their stand has made it difficult for the Petroplus to continue the operations.