Nov. 2 (Bloomberg) -- Petroplus Holdings AG, Europe’s largest independent refiner, said its lenders agreed to waive some terms under a $1.1 billion credit line after it failed to comply with a covenant.
The company’s earnings before interest, tax, depreciation and amortization fell below the required 2.5 times of net interest expense at the end of September “owing to the very difficult refining margin environment,” according to a statement from Zug, Switzerland-based Petroplus today.
Lenders under the three-year revolving credit agreed at the end of October to waive this covenant through the first quarter of 2012, the company said. Lenders also agreed to reduce the required minimum tangible net value and the level of current assets relative to its liabilities, it said.
Petroplus had $168 million of net cash at the end of September, he said.
Standard & Poor’s cut Petroplus’s rating by one level to B in September after the company breached a debt covenant in the first half of the year. Moody’s Investors Service said in August it may downgrade the company’s B1 rating.
Lenders agreed in July to waive some covenants under the facility for the second quarter of the year, the company said in August.
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