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PetroPlus, Largest European Refiner By Capacity, Files Bankruptcy

Tyler Durden's picture




 

Back on December 30, we noted that a little known name in the US, but very well known in Europe, PetroPlus is having significant solvency issues as banks froze a $1 billion revolver. Less than a month later the situation has proceeded to the next evolutionary step, as Europe's largest refiner by capacity has announced it will file for bankruptcy protection. And while operations should not be impacted, the fact that this comes just as Europe imposes an oil embargo on Iran, virtually guarantees that the continent's gasoline prices, already among the highest in the world are likely to set off even higher, paradoxically even as end-market demand is at lows. The bankruptcy will also guarantee that European initial jobless claims will plunge, especially if the BLS opens a Brussels office and applies its own very unique brand of "logic" to Europe.

From the WSJ:

Swiss-based refiner Petroplus Tuesday announced plans to file for insolvency after talks with its lenders to unblock credit lines failed.

Petroplus, which employs 2,500 and owns five refineries in Europe, said it was working to "safely shut down" operations as it prepares the necessary bankruptcy papers in Switzerland "as soon as possible." The company had already shuttered three of the five plants earlier this month, while keeping open refineries in Germany and the United Kingdom at reduced rates.

 

Petroplus shares were recently down 84% to 0.23 Swiss Francs. Trading was temporarily halted earlier Tuesday after shares dropped 88% soon after the open.

 

The company's demise comes as European refiners struggle with overcapacity, weak demand and an increasingly tight credit market. Petroplus engaged political leaders in many of its markets in its efforts to persuade financiers to keep credit lines open, but those efforts have come up short.

 

"We have worked hard to avoid this outcome, but were ultimately not able to come to an agreement with our lenders to resolve these issues given the very tight and difficult European credit and refining markets," Petroplus's Chief Executive Jean-Paul Vettier said in the statement. "We are fully aware of the impact that this will have on our workforce."

What is scary is that instead of finding a resolution, banks decided to accelerate and seek to control the underlying assets, in what continues to confirm that all of Europe is desperately battling a wholesale collateral crunch, and banks will do anything to procure any viable assets, even send the obligor in bankruptcy court.

The company has been negotiating with its banks—BNP Paribas, Société Générale, Natixis, Credit Suisse, Morgan Stanley, Deutsche Bank, Rabobank, ING, and Comerzbank. But the negotiations "have not been successful," Petroplus said in the Tuesday statement.

 

The lenders have served notice of acceleration, commenced enforcement actions and appointed a receiver, moves that "constitute an event of default" under the lending facility, Petroplus said.

One wonders what happens to Europe when end-demand returns yet refinery capacity is stuck at recession levels. Then again, one probably should wonder what will happen to inflation once US economic growth returns (yes, we know), and banks suddenly inject $1.5 trillion in excess reserves, or 150% the currency base, into the economy. 

 

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Tue, 01/24/2012 - 08:10 | 2091755 Fips_OnTheSpot
Fips_OnTheSpot's picture

Collateral, bitchez!

Tue, 01/24/2012 - 08:20 | 2091767 francis_sawyer
francis_sawyer's picture

I'm going long rickshaw pullers...

Tue, 01/24/2012 - 09:28 | 2091928 nod2glod
nod2glod's picture

The plant here in east london has just been closed, they areexpecting disruptions to petrol delivery here in london. The refinery is a major supplier to BP, who are in turn thinking about a barter system, crude for refined petrol if the refinery will stay open.

Tue, 01/24/2012 - 10:09 | 2092080 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

one probably should wonder what will happen to inflation once US economic growth returns

If the US gov't won't let the economy reset like real capitalism, it is going to be a LONG time. Deflation bitchez!

Tue, 01/24/2012 - 08:11 | 2091756 Mongo
Mongo's picture

What is scary is that instead of finding a resolution, banks decided to accelerate and seek to control the underlying assets, in what continues to confirm that all of Europe is desperately battling a wholesale collateral crunch, and banks will do anything to procure any viable assets, even send the obligor in bankruptcy court.

Yes, There you have it.

Tue, 01/24/2012 - 08:15 | 2091759 brewing
brewing's picture

bullish peak oil...

Tue, 01/24/2012 - 10:43 | 2092257 LawsofPhysics
LawsofPhysics's picture

No, more oil being printed up as we speak.  let's hope the printers can keep up with the required flux needed to sustain this house of cards.

Tue, 01/24/2012 - 08:16 | 2091761 LongSoupLine
LongSoupLine's picture

 

 

This is obviously "baked in"...hence, bullish.

(sarc/)

Tue, 01/24/2012 - 08:18 | 2091762 Quintus
Quintus's picture

The UK newspapers are already carrying warnings of impending fuel shortages in the South East of England which was largely supplied by the Petroplus refinery at Coryton.

Glad I don't need to drive much.

Tue, 01/24/2012 - 08:25 | 2091775 MsCreant
MsCreant's picture

Over here in the US we have the 3,000 mile Ceasar salad (trucking makes it normal for food to come from very far away). Are your food sources closer to where you live? I don't drive much either, but I do think I will be impacted in other ways by gas shortages.

Tue, 01/24/2012 - 08:43 | 2091789 Quintus
Quintus's picture

Good point.  I don't think it's quite as bad as that here in terms of food miles, but it is still a consideration.

If necessary (and I doubt it will be) I suspect fuel would be rationed to ensure that the food distribution network gets priority.  As long as supplies continue to make it to the shops, a complete lack of fuel for private vehicles would have almost no impact on my family.

Failing that, I have several months food supplies in hand already (You don't read ZH for nearly 3 years without learning to be prepared).  

If, by that time the situation hasn't been resolved, then I may be in trouble, as the small farm I am currently in the process of buying isn't mine yet, and I cannot therefore prepare it yet for a real SHTF situation.

 

Tue, 01/24/2012 - 08:48 | 2091811 disabledvet
disabledvet's picture

McDonalds BITCHEZ! (with coupons if necessary...

Tue, 01/24/2012 - 08:50 | 2091813 EscapeKey
EscapeKey's picture

Not that I really subscribe to the "3000 mile Ceasar salad" outrage, as the miles quoted is really just the primary result of economic factors which are subject to change (oil becoming more expensive would change it in a flash), but when you head down Tesco or Sainsbury's, you find vegetables and fruit from around the world; Chile, Egypt, Kenya, South Africa, Israel... so a 3,000 mile Ceasar salad sounds likely here as well.

Tue, 01/24/2012 - 08:51 | 2091815 Teamtc321
Teamtc321's picture

I have heard the our food in the U.S. travel's an average of 1400 miles to reach it source. Our transport trucking need's to be using Nat Gas if that is the case.  

Tue, 01/24/2012 - 10:06 | 2092064 Flakmeister
Flakmeister's picture

Trying to perpetuate the myth that NG will save everyone??

You clearly know jackshit about

1) US Oil production

2) US NG production

3) What is the BTU relationship of the two?

Even with the renaissance in the NG production, the US is still a net importer....

Now before you get your panties in a knot: Yes, a few long distance truckers could arbitrage the cost per BTU by getting their rigs to run on NG, but if too many do it, the excess NG-oil spread will vanish and return to historical values....

Tue, 01/24/2012 - 09:48 | 2091997 chinaguy
chinaguy's picture

What many don't understand (& I've bored many here with this before) is how cheap the cost of this food insurance is.

I don't know about you folks, but my homeowner's insurance policy is about $3,000 annually...

For $ 500 you can put down 6 months of food for four people.

yes, for 1/6th the cost of your annual house insurance, you can have 6 months worth of food that will shelve for 20 years.

Go on Craig's List & buy a couple of clean - lidded steel drums ($30/per) - fill them with bags of grains & beans, spices, salt - put in a piece of dry ice (to kill weevils & eggs) & let sit for a couple of weeks.

buy Mylar bags & oxygen absorbers (Ebay $50) - borrow a Mylar bag sealer from your local LDS - seal the stuff & put it back in the drums -put it in your basement and forget it.

If the shit never hits the fan - donate the stuff to your local food bank. They will be happy to get it.

This is a NO BRAINER. It costs you little & TPTB don't give a shit about your welfare.

Tue, 01/24/2012 - 08:34 | 2091792 francis_sawyer
francis_sawyer's picture

Funny thing is... In Portugal... there is naturally a big seafood industry and the food doesn't have to travel... THAT... far...

Nevertheless... The fishing boats may be back to sails & oars pretty soon...

Tue, 01/24/2012 - 08:36 | 2091796 francis_sawyer
francis_sawyer's picture

Or maybe the US military could skip a few F-16 training sorties for a day or two and lend them a gallon of gas... Now wouldn't that be a novel idea?

Tue, 01/24/2012 - 08:40 | 2091802 GeneMarchbanks
GeneMarchbanks's picture

One can always dream...

Tue, 01/24/2012 - 08:28 | 2091780 gojam
gojam's picture

Hi Quintus.

Yeh, been watching that.

I think it may have be nationalised (or someone 'encouraged' to take it on [ How does Virgin Oil sound ?] )

Tue, 01/24/2012 - 08:39 | 2091795 Quintus
Quintus's picture

I read that BP are proposing to supply the refinery with 'Free' crude in return for payment in refined product.  That would be one way of overcoming Petroplus' inability to finance raw material purchases.

Let's see what happens.

 

Tue, 01/24/2012 - 08:34 | 2091790 Dcheeth2
Dcheeth2's picture

Supplies were halted from the refinery yesterday. Only the South-east and London will be affected though, as the other refineries in the UK serve other regions and are not owned by Petroplus

Tue, 01/24/2012 - 08:45 | 2091808 EscapeKey
EscapeKey's picture

Same here. Yay for working remote.

But house prices are still outrageous, council taxes get routed out of the counties to support the public sector employed north, and now we have to pay higher at the pumps too?

Tue, 01/24/2012 - 08:46 | 2091809 disabledvet
disabledvet's picture

Exactly. Shortages...NOT inflation. Would you take $10 a gallon gasoline if the alternative is you "don't have any?" probably a minor point given it's all related to the...ahem..."simple nature of what money is." Insofar as a couple trillion in excess reserves...I'd still be more worried about an outright default by say...the States of Illinois and Indiana...neither of which have had growing economies for decades nor have they had any interest in creating said reality. Nothing like a credit crunch to stare us all in the face of "to much cash." And...oh yeah...who needs a private bank of any scale to help with that anyways...

Tue, 01/24/2012 - 08:52 | 2091816 EscapeKey
EscapeKey's picture

Yes, but shortages could very easily translate into increased prices, given lack of fixed prices.

And as it should, given the alternate is so much worse. Besides, this would give birth to arbitrage opportunities.

Tue, 01/24/2012 - 10:51 | 2092286 LawsofPhysics
LawsofPhysics's picture

"but shortages could very easily translate into increased prices" - Sure, but only if people are willing to sell the item/commodity in question.  If people stop selling because the item or commodity is essential for day-to-day function/survival, the outcome is a bit different.

Tue, 01/24/2012 - 08:18 | 2091764 francis_sawyer
francis_sawyer's picture

next stop, the gold & PM 'refineries'...

Tue, 01/24/2012 - 08:21 | 2091769 Sandmann
Sandmann's picture

Governments should simply order it to continue refining using Civil Contingencies Act 2004 and Declare it a threat to national security - which it is if we contemplate war with Iran

Tue, 01/24/2012 - 08:24 | 2091772 GeneMarchbanks
GeneMarchbanks's picture

Who's "we"?

Tue, 01/24/2012 - 08:40 | 2091801 smb12321
smb12321's picture

Firms operating with public funds without regard to costs make it impossible to ascertain the value of anything since prices are set by decree and not markets.  The USSR's problem (and alternatively China's success) was that it never knew the price of its goods or services in the real world.  Thus, it kept operating at enormous deficits until the facade crumbled,.

Tue, 01/24/2012 - 09:29 | 2091933 Sandmann
Sandmann's picture

As a Statement of the Obvious that does not answer the question.  Markets seize up when fuel is rationed, whether by Bankruptcy or War and Government is there to keep Markets functioning.

 

Tue, 01/24/2012 - 08:22 | 2091770 MsCreant
MsCreant's picture

It looks like a finance issue, it is really a peak oil issue. We blew our oil wad, we over built in terms of the number, size, and sprawl of houses. We are not living sustainably, we need inputs that are to big to keep up with our oil Jonesing. Most travel a long way to work, shop, and have lots of activities located all over a city in a day. We think we need so much stuff to put in those houses, in order to be okay. We got into a financial hole pushing this lifestyle which is how the little guy and gal ran up all of the debt they have taken on. The debt is now freezing up oil markets.

Everything is everything. Let's hope that after winter, comes the spring.

Tue, 01/24/2012 - 08:38 | 2091798 GeneMarchbanks
GeneMarchbanks's picture

Europe has seen high prices over longer periods and adjusted somewhat alright with Eurorail and, generally speaking, efficient public transport plus short distances.

The US is now going to have start making those same adjustments. Convert them engines to vegetable oil and corner the bicycle market pronto. If you're in the Southwest, ... uhm... pray.

Tue, 01/24/2012 - 09:03 | 2091854 Teamtc321
Teamtc321's picture

Diesel engines in our transportation fleet need to be converted to Nat Gas now. We need to stop playing politic's with our food transportation here in the U.S. before it is to late. 

 

www.pickensplan.com

Tue, 01/24/2012 - 10:06 | 2092068 Flakmeister
Flakmeister's picture

Are you Pickens personal shill and Toadie???

Tue, 01/24/2012 - 08:52 | 2091817 disabledvet
disabledvet's picture

Totally fixable...and unlike the US the UK already has a natural gas infrastructure built out. Hmmmm. But no one wants to build the engine. Geee...I wonder why that is...

Tue, 01/24/2012 - 09:04 | 2091846 GeneMarchbanks
GeneMarchbanks's picture

Do go on?

Which theory do you subscribe to? I believe I've heard them all but you never know.

Tue, 01/24/2012 - 09:08 | 2091870 Teamtc321
Teamtc321's picture

The engines are already built, diesel engines cat, cummin's etc. can be adapted with ease to burn nat gas.

 

http://www.westport.com/

http://cleanenergyfuels.com/

http://pickensplan.com/ 

 

Tue, 01/24/2012 - 10:46 | 2092268 LawsofPhysics
LawsofPhysics's picture

Better check on the BTUs and the FLUX required to maintain things in the current state.  Many engines can be easily adapted to burn propane, methane, and hydrogen gas.  And burn it they will, faster than you can imagine.

Tue, 01/24/2012 - 10:51 | 2092288 Flakmeister
Flakmeister's picture

Yes, he is delusional.... I do not doubt the first 2000 truckers that convert will recoup the up front CAPEX....after that, good luck....

  

Tue, 01/24/2012 - 12:41 | 2092792 CrazyCooter
CrazyCooter's picture

When I was still in TX, I had residential NatGas and looked very closely at converting my 300c to bi-fuel. In my case, the numbers did not work, but I had the option to pull the trigger and do it.

It is very important to note that bi-fuel is the way to go forward, with some caveats. A home compressor system is required, which implies a residential nat gas supply. Assuming bi-fuel and home compression, a vehicle could conveniently burn the cheapest resource. At the time I priced it out, nat gas (by Gallon Gas Equivalent - GGE) was almost 40% cheaper as best I could tell (residential rates). I noted that all the public CNG stations absorbed this savings, thus the residential compressor.

All that said, CNG has long been popular with fleet vehicles ... and I am sure fleet vehicles have accountants with 10-keys thinking for them, so the numbers can work. But a fleet can afford its own nat gas supply, compressor, mechanics, etc. In the case of a consumer, the crux is an affordable bi-fuel vehicle and the service infrastructure (e.g. mechanic) to keep it operating. This was simple in the days of the carburetor, but today with all the electronics, not so much.

I still maintain a manufacturer can do a bi-fuel option for its most popular vehicle at a very affordable (and profitable) rate to the consumer. I figured it would cost a few grand as an add on, but the manufacturers are loathe to do this...

Regards,

Cooter

Tue, 01/24/2012 - 08:23 | 2091773 Little Red Rooter
Little Red Rooter's picture

The need for potatoes was grand

As the riots got way out of hand

This was after the crash

Where they lost all their cash

And wished they bought oxen and land

Tue, 01/24/2012 - 09:18 | 2091899 Savvy
Savvy's picture

There was an old man from Leeds

Who's garden produced only weeds

Reading "inflation"!

he drove to the station

Cause it only leads if it bleeds

Tue, 01/24/2012 - 08:27 | 2091779 Karl Napp
Karl Napp's picture

Yesterday one of Germany's largest drugstore chain (Schlecker) filed for bankcruptcy, today it became known that the scond largest DIY chain (Praktiker) has difficulties to refinance its working capital needs. Yeah private consumption is great here in Germany.

Tue, 01/24/2012 - 09:31 | 2091910 Sandmann
Sandmann's picture

Schlecker was a skinflint who nickel and dimed his business to bankruptcy. DM and the other competitors are doing okay

 

http://valueandopportunity.com/2011/12/08/praktiker-bond-5-78-2016-de000...

https://www.boerse-stuttgart.de/rd/en/aktien/factsheet?sSymbol=PRA.STU

 

http://www.distressed-debt-investing.com/2012/01/distressed-debt-petropl...

 

 

You should have commented on MAN-Roland which Allianz SE let collapse

Tue, 01/24/2012 - 08:27 | 2091781 Trying to Understand
Trying to Understand's picture

...didn't obummer loan them a big chunk of change... if so... is this another solyndra??? If someone has a link...

Tue, 01/24/2012 - 15:31 | 2093554 Iam_Silverman
Iam_Silverman's picture

"If someone has a link..."

I'm sure Mitt Romney's gang will have one up shortly................Oh, and I bet they'll implicate Newt as being in on it too!

Tue, 01/24/2012 - 08:35 | 2091794 Happy Swede
Happy Swede's picture

"Then again, one probably should wonder what will happen to inflation once US economic growth returns (yes, we know), and banks suddenly inject $1.5 trillion in excess reserves, or 150% the currency base, into the economy. "

 

BANKS DO NOT LEND RESERVES. Period. They are capital constrained not revenue constrained and give loans to credit worthy customers. Debunks the whole hyperinflation argument. Sorry guys.

 

If a bank gives a loan to a customer it simply credits the customers bank account. It DOES NOT MOVE THE MONEY FROM OTHER DEPOSITS. Yes it is created out of thin air. Reserves hence have little or no impact on bank lending hence hyperinflation is not coming.

Tue, 01/24/2012 - 09:29 | 2091926 Quintus
Quintus's picture

Are you saying that a bank with $100 billion in reserves won't lend out (Create) more money than that bank with $1 billion in reserves?

Oh, I think they will.  When has a bank ever just sat on capital that it could make a penny on by lending out?

Tue, 01/24/2012 - 08:50 | 2091799 Little Red Rooter
Little Red Rooter's picture

Potash, bitchez!

Tue, 01/24/2012 - 08:50 | 2091810 GeneMarchbanks
GeneMarchbanks's picture

Ransquawk: 'Iran summon Danish Ambassador to complain to EU over illogical decision to impose oil embargo - Irna News Agency'

In Copenhagen, cars have sails now so it's not really 'illogical' at all...
Tue, 01/24/2012 - 09:08 | 2091871 Iriestx
Iriestx's picture

Hess and PDVSA closed their 500,000bpd joint venture in the US, HOVENSA.

 

http://www.ogj.com/articles/print/vol-110/issue-1c/general-interest/hovensa-to-close-500000-bd-us-virgin-islands-refinery.html

 

 

Tue, 01/24/2012 - 09:32 | 2091897 falak pema
falak pema's picture

This is what happens when :

1° A continent, Europe, controlled to a large part by seven sisters Oil lobby since 1945 days,  decides that Oil refining is déja vu : Decision made in early 80s. It is interesting to note that it was the Oil Lobby that forced this on their host Euro countries declaring that there was over capacity in W Eur, that new investments world wide would be BRIC oriented,  and that the margins were too low to warrant further investment in first world. In France, the government used its protectionist inspired measures to help out its ailing car industry (Renault, Peugeot, Citroen) threatened by upper margin/quality German cars, (BMW/VW/AUDI), by seizing this unusual refining scenario to good TEMPORARY advantage. They decreed that diesel fuel woud be taxed favourably relative to gasoline, allowing French cars to bring out the diesel fuel engine in early 80s to counter German menace. The tax comparative advantage, age old sleight of protective Colbertist reasoning, allowed the French car industry to surge world wide in diesel engine niche, with better and cheaper consumption ratios, but disastrously worse ecological collateral costs (carcinogenic + particle emissions).

It also had as side benefit to allow the retrenched refining industry to NOT invest in cracking units to convert middle and heavy distillate cuts to gasoline, something that the Oil lobby didn't want to do and the government allowed them to escape by this reuse of middle distilate cuts as diesel fuel. The diesel home heating fuel had been practically eliminated in Europe by the arrival of Natural Gas from Groningen (Neth) and then Norway/Russia. So refining should have logically seen important investments in cracking capacity in europe even if overall oil consumption was destined to decline in the 80/90s.

2° Twenty years later those rust and dust laden refineries were off loaded by the Oil majors to Financial funds, like Petroplus, who have had a good run over last ten years with these junk refineries, milking them for all they were worth in a energy growth environment of 1998-2008 period.

3° Now having milked them dry, made their profits through inordinate tax breaks negotiated with passive Euro governments to buy said rust pots from Oil majors,  they go chapter 11 and leave the country with a deindustrialised refining sector and two thousand people out of specialised jobs. Oil industry does use hi-quality technicians.

Thank you big business for dynamic industry planning over thirty years with passive, surrogate government collusion. May these rust pots remind us what being an industrial nation once meant...and what the resultant cost will be to reclimb that hill again  for the next generations.

Written by one who has served this industry for twenty Halcyon years....and knows the knitty gritty of those yester years lost legacy.

Tue, 01/24/2012 - 09:33 | 2091942 Sandmann
Sandmann's picture

Funny old world when you consider Britain nationalised Anglo-Iranian in 1911 to guarantee oil for the Royal Navy and bought an off-the shelf name - British Petroleum - from Deutsche Bank and thought strategically about oil supplies and national survival - but now it is a BP refinery sold to Petroplus at Coryton that threatens petrol supplies in the Southeast in the months before they stage the Olympics !

Tue, 01/24/2012 - 09:36 | 2091949 GeneMarchbanks
GeneMarchbanks's picture

Are you sad now? I mean, about those twenty years?

Tue, 01/24/2012 - 10:09 | 2092079 falak pema
falak pema's picture

Nope, days of wine n roses, I visited the world and my youth was well spent even if the Industry was a scam, on both sides : the seven sisters as the third world oil owners. Totally corrupt lot. Never has so much wealth been so badly spent since 1970. In the Oil pipeline and downstream industry, to impoverish the people, enrichen the Oligarchs. Those early days were heady times when as young engineers and refinery architects we thought we could contribute to a better world...we didn't know then that we were up against : the biggest legal mafia of the age. 

It was, stays today,  the name of the game of Pax Americana, and I saw it on five continents, in vivid multimillion dollar payout  per investment; with the blood and guts of third world sheeple thrown in as entry ante to sit at the table of the great black gold game; awesome stuff, but without the stench to match the trenches of WW1. Thats what Oligarchs call their own back yard. It looks and feels clean, all in stainless steel and gleaming like jewels at sun up as at sun down, the myriad pipes and pumps and towers of Babel that we built, modern cathedrals of science, using computer simulations to optimise five different feeds and ten different product slates. IBM gut punching n number crunching stuff. But in the real world, in Angola, in Congo, in Nigeria, as in ME, the sheeple were slaughtered by the thousands. We always arrived after the battle and left before the next one, like white gloved uber technicians of another world. More fool us...

Tue, 01/24/2012 - 10:15 | 2092115 GeneMarchbanks
GeneMarchbanks's picture

You seem terribly detached and guilt ridden, nonetheless I enjoy your prose.

Tue, 01/24/2012 - 10:22 | 2092157 Flakmeister
Flakmeister's picture

Yep... our very own Eastern mystic Bard....

Tue, 01/24/2012 - 11:04 | 2092289 falak pema
falak pema's picture

the closest I got to killing anyone was hitting a french bureaucrat on the jaw when he said "Look how much we spend on educating the local children with our oil money, which is purely charity" When you know the size of the rip off...

The closest I got to taking money on the sly was to PAY from my own pocket a local technician an urgent free trip to France. His family member was ill. He was out of pocket. No payback needed although it could have been possible if I had insisted, he was responsible for maintenance of plant...but mixing private and company business is only for corporate barons, not engineers. 

So whats there to be guilty about...just the waste. 

Tue, 01/24/2012 - 09:29 | 2091931 tabasco71
tabasco71's picture

I presume money supply can be reduced/reversed to strengthen the currency again (?) after this ongoing, never-ending, phase of increased supply is complete.

Tue, 01/24/2012 - 16:27 | 2093779 theprofromdover
theprofromdover's picture

Now why would Petroplus be in financial difficulties?

Could it be they never re-invested in new technology, and sat with old processes for too long?

Could it be they were syphoning out as much cash as they could over the years for senior personnel, and loading up on debt?

That is the route to failure for most of these companies I suspect, senior management greed, and investment bankers & private equity teaching them how to steal.

Wed, 01/25/2012 - 00:05 | 2095328 vainamoinen
vainamoinen's picture

FALAK PEMA:

POST OF THE WEEK!    THANK YOU.

V.

Do NOT follow this link or you will be banned from the site!