Apollo in talks with Stanlow refinery owner amid dash for income | Company Information

Apollo World-wide Management, just one of the world’s major expenditure teams, is in talks to present hundreds of hundreds of thousands of pounds of funding to the owner of the Stanlow oil refinery as it tries to navigate by means of a economic crunch.

Sky News has learnt that Apollo has been in conversations with Essar Oil British isles for many months about structuring a offer that would contain it having a substantial position in the firm’s funds construction.

Any offer could require providing close to £400m in new funding to the firm.

A man or woman shut to Apollo stated the New York-listed business was 1 of quite a few get-togethers negotiating with Indian-owned Essar Oil Uk and that a transaction was far from particular.

Amongst the hurdles to concluding a deal with the operator of Britain’s 2nd-most significant oil refinery had been the company governance-linked problems which experienced prompted the resignation of two lawful advisers to the business and the termination of a borrowing facility with Lloyds Banking Team, they additional.

Portion of any new money secured by Stanlow’s mother or father would be earmarked to repay at least part of a large superb invoice owed to HM Income and Customs, in accordance to insiders.

The identity of other prospective funders was unclear on Thursday.

Apollo’s involvement in the course of action is sensible provided its recurrent involvement in advanced corporate funding conditions.

It held in-depth talks about a deal to purchase assets from the collapsed provide chain finance group Greensill Capital in advance of withdrawing from the discussions.

In the latest times, Sky News has exposed facts of an unfolding crisis at Essar Oil Uk that has remaining Whitehall officers involved about its upcoming.

The Stanlow refinery is accountable for providing just one-sixth of the UK’s transportation fuels – such as as a result of a pipeline from Stanlow to Manchester Airport – giving it an significant job in the UK’s industrial financial state.

As well as the resignations of qualified advisers, frustrations in excess of the functioning of Essar Oil United kingdom have activated the departures of two main executives within just a 12 months.

Essar Oil British isles bought the Stanlow refinery at Ellesmere Port from Shell in 2011.

The website specifically employs far more than 900 folks, with an extra 800 on-internet site contractors and a further more 5,000 folks working indirectly inside of the extended worth chain, in accordance to Essar Oil UK’s site.

A source close to Essar Oil Uk said the COVID-19 pandemic had depressed margins and impacted need for its solutions, alongside with other refining enterprises about the entire world.

Stanlow was now viewing enhanced need for highway transportation fuels, and the enterprise remained dedicated to a sustainable foreseeable future and aiding the UK’s decarbonisation agenda, the resource claimed.

An Essar spokesman stated: “We are in constructive discussions with many finance suppliers and are self-confident that we will put in spot an ideal financing answer for the corporation.

“At this phase, we are not geared up to comment on unique names.”

An Apollo spokesman declined to remark.