(Reuters) -- A French court has rejected two bids to take over the Petit-Couronne oil refinery, the oldest in France, sending it into liquidation unless a new offer is submitted by November 5. The refinery was operated by insolvent oil company Petroplus.
French Industry Minister Arnaud Montebourg, who has been actively trying to rescue the plant, said in a statement the government would continue efforts to find a buyer.
The commercial court in Rouen rejected two bids, including one from Dubai-based NetOil, the unlisted group of Middle Eastern businessman Roger Tamraz, and from Hong Kong-based Alanfandi Petroleum Group. The NetOil bid was regarded by the refinery's trade unions as the most likely to succeed.
Petroplus Holdings AG is Europe's largest independent oil refiner by capacity. Petroplus ran out of cash in late January after struggling for months with weak demand due to the economic slowdown in Europe and overcapacity amid tighter credit conditions, high crude prices and competition from Asia and the Middle East.
The French government, which wanted to keep the refinery in operation in a bid to protect jobs, brokered an agreement with Royal Dutch Shell, which committed to buy refined products from the plant for six months.
Independent refiners made offers to take over the refinery, but the court rejected these bids, the spokeswoman said, declining to provide further details.
MRC