After the resignation of two of its law firms, it seems that Essar Oil UK is in trouble. The firm owns Britain’s second largest oil refinery and supplies around 16% of the countries transport fuels.
In addition, Lloyds Banking Group’s covenant waiver expired at the end of last month meaning that Essar will have to find new funding. Essar say that they are in ‘an advanced stage of discussions with a replacement lender’
The pandemic is being blamed for Essar’s troubles, but reports say that the recent resignation of two of its chief executives were due to concerns over the running of the company.
There is no doubt that the company is in urgent talks with the Government who is concerned that should the company fail, fuel supplies may affect the public.
This comes after Essar took advantage of all the Government support schemes, including deferring their tax payments of c£350m.
Should Essar fail, the potential effects could be felt in many industries ….watch this space!
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