The shutdown is a sign of the rapidly deteriorating environment in the European refining segment due to the ongoing European credit crisis. In November 2011, Petroplus had reached an agreement with its syndicate to break its debt covenants without penalty. However, in December, Standard & Poor's downgraded the company's credit rating from B to CCC+ and warned that the company could face bankruptcy if it did not reach an agreement with banks. Unless governments intervene to save the company, or pressure is placed on the syndicate to extend its credit line to Petroplus, the company will undoubtedly have to declare bankruptcy.
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