Trinidad Petroleum Holdings Company (TPH) chairman Wilfred Espinet yesterday refused to comment on an international article which states the reformatted company is seeking over a billion dollar in loans.
In a brief exchange, Espinet said the Reuters report was not “sanctioned” by the company.
“The company is not in a position to make any statement on its financing at this time,” he told Guardian Media when asked to comment on the report, which broke internationally yesterday.
He, however, did not deny the contents of the article.
According to the article, Trinidad Petroleum plans on using its oil prospects and reserves to secure a billion-dollar loan. It has also engaged Scotiabank to facilitate the sale of the refinery.
The article states that TPH “is in advanced debt restructuring talks with banks and has secured new loans of up to US$1.4bn based on oil reserves to ease a looming US$850m bond maturity in August, four people familiar with the matter said.”
According to the article, which did not name its four sources, the TPH is “tapping the loan market” trying to sell its new format of less workers and improved production. The article said the TPH was contacted but did not respond.
In September, Prime Minister Dr Keith Rowley confirmed the shutdown of the aged Petrotrin refinery and its restructuring. That move eventually led to the dismissal of some 1,700 employees, a payout of over a billion dollars and the naming of TPH as the new entity.
The article says that Trinidad Petroleum is expected to meet with its rating agencies this week to deliver its planned path to profitability.
When Petrotrin finally shut its doors back in November, the company was split into three separate units: Heritage Petroleum which took over Exploration and Production, Paria Fuel Trading Company and the Guaracara Refining Company, with all three governed by its parent company TPH.
According to the article, Morgan Stanley, Credit Suisse, Panamanian trade bank Banco LatinoAmericano de Comercio Exterior (Bladex), First Citizens and Ansa Merchant Bank are arranging approximately US$1.2bn-US$1.4bn of loans.
The new loan arrangements will also help offset the repayment of a $US850m bond payment which becomes due in August and was one of the reasons used to shut down the Petrotrin refinery. Back in August, Espinet said Petrotrin sustained some $8 billion in losses in a five-year period and that could not be sustained. He also cited the massive employee salary overhead as one of the chief reasons for the refinery shutdown.