By Marcus Leach

Petroplus, the Swiss oil refiner, have announced they will file for insolvency having failed to extend the deadlines for their loan repayments with their creditors.

The firm said it would make the filing "as soon as possible".

"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," said Petroplus chief executive Jean-Paul Vettier.

"We are fully aware of the impact that this will have on our workforce, their families and the communities where we have operated our businesses."

Shares in the company were suspended on Monday, and the firm have had its credit lines frozen since the end of last year.

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