The administrator of Petroplus' UK assets, PwC, announced on Monday two meetings with creditors to be held later in March to discuss the company's current position and its restructuring options.
PwC said the company had over $2.3 billion (1.45 billion pounds) of debt, including $1.75 billion in relation to guarantees of four public note issues by other companies in the Petroplus group.
Assets include the UK refinery at Coryton, which is being held at a book value of $1.3 billion, and around $250 million of accounts receivable mainly from other Petroplus companies across Europe, which are also in insolvency proceedings.
To continue operations at the refinery in the medium term, the company will need some $1 billion of new financing and will need the support of its creditors as part of a wide-reaching financial and operational restructuring, joint administrator and PwC partner Steven Pearson said.
No details of the restructuring proposals are currently available.
Holders of $1.75 billion of convertible bonds and senior notes held by the Petroplus Refining and Marketing Limited, the UK operation, have been invited to a meeting on March 12.
A second meeting for all creditors will take place on March 21.
A sale and even a closure of the refinery are also being considered should a refinancing and restructuring prove unsuccessful. But potential suitors will need a large balance sheet to meet the demands of the refinery, Pearson told Reuters in a previous interview.
Coryton, the most prized asset of now insolvent Petroplus, secured a three-month breathing space by means of a tolling agreement with Morgan Stanley, KKR and Petroplus' co-founder Marcel van Poecke's investment vehicle AtlasInvest in mid-February.
The agreement will see it continue to receive crude to refine, helping to avoid what could otherwise be a costly shutdown.
The plant is running at around 120,000-130,000 barrels per day (bpd) compared with a full capacity of around 172,000 bpd, Pearson said.
(Reporting by Zaida Espana and Simon Falush; editing by James Jukwey)