The UK subsidiary of the firm, which owns the Coryton oil refinery in Essex, has appointed PricewaterhouseCoopers (PwC) as administrators.

Shares in the company, which is Europe’s largest independent oil refiner, were suspended on Monday.

Petroplus

Petroplus had its credit lines frozen by its lenders in December 2011.

Its credit rating was downgraded by Standard and Poor’s earlier this month on fears of the company defaulting on its debt.

“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.”

‘Restructuring options’

The Coryton refinery is owned and operated by Petroplus Refining and Marketing Limited and employs about 500 staff and 350 contractors. It supplies about 20% of fuel for London and the South East.

As well as refining oil for use as fuel, it also imports fuel from other countries which has already been refined.

PwC has also been appointed as administrator for Petroplus Refining Teesside, which operates an oil storage site on Teesside and a research site in Swansea. It has about 60 employees.

“Our immediate priority is to continue to operate the Coryton refinery and the Teesside storage business without disruption while the financial position is clarified and restructuring options are explored,” said Steven Pearson at PwC.

He said PwC would be starting discussions over the coming days with customers, employees, creditors and the government “to secure the future” of both sites.

BP, which used to own Coryton and sold it to Petroplus in 2007 for $1.4bn (£900m), had earlier been in talks to throw the plant a lifeline by supplying it with crude and receiving refined products as payment.

BP is the plant’s biggest customer for refined fuel, but told the BBC: “There are no immediate supply issues across our network.”

A group of European parliamentarians, including East of England MEP Richard Howitt, have been meeting to discuss ways to save jobs at Petroplus, which has facilities in France, Germany, Belgium, Switzerland and the UK.

The group met European Union Employment Commissioner Laszlo Andor last week to consider what options may be available.

The group is set to meet European Energy Commissioner Gunther Oettinger later this week.

bbc.co.uk

Some 1.54 million people sought help with excessive borrowing in 2011, compared with 1.4 million the previous year, the study by the Money Advice Trust has shown.

Debt Help

Figures also show around 10 million individuals in the UK find themselves in a constant struggle to manage their debts, the charity found.

The survey, carried out by the University of Nottingham for the Money Advice Trust, is an update on previous work forecasting demand for debt advice in the UK.

The research predicts a sharp rise in the demand for debt advice in the first half of this year, mostly due to growing unemployment and modest wage growth.

Joanna Elson OBE, chief executive of the Money Advice Trust, said: “2011 was a tough financial year for many families across the UK; unfortunately more people are likely to struggle in 2012.

“With unemployment rising and wage growth relatively flat, while prices are going up, it’s going to take a greater proportion of household income to heat your home, put food on your table and petrol in your car.

“In short, day-to-day living will take up more and more of your money, which can make it hard to pay the bills.”

She added: “It is so important that people are aware of and can access the free advice that can make the crucial difference between allowing a difficult situation to spiral into unmanageable debt and regaining control of your finances.

“Our research shows people are going to extreme lengths to get on top of their finances, with some selling treasured items, such as jewellery, cars and even pets, just to make ends meet.”

telegraph.co.uk

Shelter, who carried out the research, has warned that relying on such methods could lead to people losing their homes.

The figure equates to almost seven million people when projected on a national scale, the charity said.

Payday Loans UK

And it has urged those sinking into a “spiral of debt” to seek immediate help.

Shelter found that 2% of people have used at least one payday loan to fund their rent or mortgage in the last year, equating to almost one million people nationally.

It said such loans, which are intended for short-term use and can charge as much as 4,000% APR in some cases, are an “unsustainable” way of paying for housing.

Campbell Robb, chief executive of Shelter, said: “These shocking findings show the extent to which millions of households across the country are desperately struggling to keep their home.

“Turning to short-term payday loans to help pay for the cost of housing is totally unsustainable. It can quickly lead to debts snowballing out of control and can lead to eviction or repossession and ultimately homelessness.”

The Shelter report will fuel concerns about people seeking high-interest credit, following a report from insolvency trade body R3 last month which predicted payday loan companies will see a surge in demand in the coming months as Britons struggle with their finances.

The Office of Fair Trading is planning a review to ensure businesses are complying with responsible lending rules amid criticism of the payday loan sector.

The Consumer Finance Association (CFA), which represents businesses offering short-term loans, stresses on its website that payday loans are designed to be repaid typically within a month and a half and they are not appropriate if a large sum of cash is needed to be paid back over months or years.

Martin Lewis of MoneySavingExpert.com said: “It’s incredibly worrying there’s now evidence of people using payday loans to meet housing costs.
“While it’s an obvious temptation to grasp these loans as a lifeline, in the long run it may hurt more than help.”

finance.yahoo.com

Administrators closed 19 stores and laid off the shop workers as the Dundonald, Ayrshire-based firm became the first notable post-Christmas retail casualty.

D2 Jeans

The remaining 28 stores are being run as a going concern while administrators seek a buyer for parts or all of the business in the hope of saving the jobs of hundreds more employees.

BDO LLP administrator James Stephen said: “It is unfortunate that the economic climate and extremely difficult trading conditions have significantly affected the retail sector.

“However, we are hopeful of securing a sale of all or part of the business and will continue to trade the business while this is explored.”

It is the second time in two years that the chain, originally set up by Scottish entrepreneur Sir Tom Hunter, has gone into administration.

Last time, it was understood that around 500 jobs were saved as its management struck a deal to buy more than 40 of its stores out of administration. But around 32 stores – employing more than 300 staff – were not included in the rescue deal.

A spokeswoman for BDO said she was unable to say which of the firm’s stores had been closed.

According to the company’s website, which is no longer fully functioning, D2 operates stores across the UK. These include Sheffield, Redditch, Taunton,
South Wirral, Bicester, Banbury, Rochdale, King’s Lynn, Gloucester, Barnstaple, Penzance, Truro, Newquay and Cambridge in England.

In Scotland it has stores in Paisley, East Kilbride, Falkirk, Livingston, Coatbridge, Hamilton, Dunfermline, Glenrothes, Irvine, Ayr and four in Glasgow.

In Northern Ireland its outlets can be found in Enniskillen, Londonderry, Omagh, Newry, Lisburn, Portadown, Ballymena, Coleraine and Newtownabbey. There are two in Bangor and five in Belfast.

And in Wales, it has sites in Haverfordwest, Llanelli and Merthyr Tydfil.

There are fears that some big name retailers will collapse after Christmas when most will be hit with their quarterly rent bills.

High street lingerie chain La Senza, which has 146 stores and 18 concessions in the UK, announced last week that it plans to enter administration in coming days.

And Blacks Leisure, which owns 98 Blacks outlets and 208 Millets stores and employs 3,600 staff, faces speculation that it will go into administration in a move that would allow rivals to cherry-pick its best assets.

finance.yahoo.com

The OFT has not named the companies involved, but said it was concerned firms were not checking whether customers could afford to repay these debts or explaining the terms of the loans clearly – including the often hefty charges for falling behind with repayments.

Payday Loans UK

Those found guilty of misconduct could lose their credit licenses or be forced to change their practices.

The regulator is now widening its investigation in the run up to Christmas, and will look at the online advertising of a further 50 firms.

In total the OFT received 1,535 complaints about these controversial companies in the first 11 months of this year, up from just 700 complaints for the whole of 2010. Surprisingly, it received more complaints about these payday loan companies than credit card companies – despite the fact that the latter is far more widely used by the general public.

Payday loans have attracted criticisms recently – from politicians and consumer groups. These short-term loans charge high interest rates, in some cases equivalent to APRs of 3,000pc.

This market has boomed in the UK in recent years, and is now estimated to be worth £2bn, with the number of customers rising from 300,000 in 2006 to an estimated 4m today.

The OFT highlighted a number of concerns about how these loans are structured and advertised. This includes the use of “continuous payment authority” which gives the payday loan company the right to keep taking repayments, even if a customer’s bank account is overdrawn.

It is also concerned that many of these loans – which may be just for a week or a month – are effectively “rolled over” if they haven’t been repaid. In such cases charges can quickly spiral, leaving those on low incomes struggling to repay these debts.

However, payday loan companies have argued that they offer a cost-effective way for people to access small amounts of credit for very short-periods of time, typically to tide them over until their next payday. While the APRs may look high compared to personal loans and credit cards, they are comparable to the charges levied on some unauthorised bank overdrafts.

telegraph.co.uk

Concern over personal debt has reached the highest level since insolvency body R3 began making records, it said yesterday as it warned of “zombie debtors”
who are only paying off interest rather than the debt itself.

Payday Loans UK

Payday loan companies have been criticised for charging annual interest rates of up to 4,000 per cent. Frances Coulson, president of R3, said people across all socio-economic groups face a “debt hangover” which is worsening because of rising unemployment and increased spending in the run-up Christmas.

“Many who take out payday loans find them to be a negative experience, often escalating financial troubles.”

MPs and consumer groups have called for a tightening of laws on payday loan firms, although this has raised fears it could push the poorest people toward illegal loan sharks.

Sarah Brooks, director of financial services at Consumer Focus, said: “Much more needs to be done to prevent consumers getting caught in spiralling debt.”

A spokesman for the coalition said it was aware of concerns and that ministers are working with the industry and consumer organisations to ensure people are protected.

Industry group the Consumer Finance Association said firms provide an alternative to bank charges on unauthorised loans and described the 2,000 people sample size in the R3 survey as “not credible”.

cityam.com

In a move that will pile pressure on eurozone leaders and is likely to hit markets, it emerged that ratings agency Standard & Poor’s had put all but two euro nations on credit watch.

Eurozone

The only two not named were Cyprus, which was already under review, and Greece, which holds the world’s worst rating.

The bombshell came as eurozone leaders frantically tried to prevent the break-up of the single currency and restore stability after weeks of mounting crisis.

After emergency talks in Paris on Monday, French President Nicolas Sarkozy and German Chancellor Angela Merkel renewed calls for an EU Treaty change to solve the single currency crisis.

They said they wanted change to be carried out by all 27 member states if possible – or at least the 17 eurozone countries.

The aim would be to allow far tougher rules and sanctions governing the eurozone in future to reassure markets about the euro’s long-term stability.

The talks marked the start of a week of intense efforts to settle a eurozone stability deal to convince markets once and for all that the single currency can survive the current economic turmoil.

The key plan is to toughen eurozone checks and balances – something lawyers say will need treaty change.

The move towards treaty changes prompted fresh difficulties for Prime Minister David Cameron as eurosceptic Tories stepped up calls for a referendum on the European Union.

Downing Street insisted that the scale of the proposal – to be put to an EU summit later this week – did not amount to change warranting a referendum in the UK.

But Work and Pensions Secretary Iain Duncan Smith sided with the eurosceptic right in the Conservatives by suggesting that the impact from any treaty change would demand a national vote.

“The Prime Minister has always been clear, if there are substantial changes that affect Britain’s position, then he would go for a referendum because that’s what we said to the British public we would do,” said Mr Duncan Smith.

Mr Cameron, who will attend a meeting of the European Council in Brussels later this week, insisted nothing had changed to justify such a move.

“Clearly, there are negotiations going on in Europe. I will be part of those negotiations on Thursday and Friday,” he said.

“If there is a treaty at the level of 27, and if that passed powers from Britain to Brussels, there would be a referendum.

“We have legislated now so that it is impossible for a British government to pass power from Britain to Brussels without asking the British people in a referendum first.”

finance.yahoo.com

A study for comparison website uSwitch.com found that 32% of households in Wales are “fuel poor” – defined as those spending 10% or more of their net monthly income on energy bills.

Fuel Poverty

The East of England is also considered a “fuel poor” region, with 31% of households affected.

London was found to have the lowest level of fuel poverty, with 16% of households affected.

However, although with large wealth anomalies across the city, researchers said the fuel poverty levels could be worse than the study suggests from using average incomes.

Ann Robinson, director of consumer policy at uSwitch.com, said: “The fuel poor can be found in all types of households and in all parts of the country, but some regions and households are clearly more vulnerable than others.

“There is now real urgency for the Government to deliver on fuel poverty and to act quickly to alleviate the misery being faced by those who cannot afford to heat their homes.”

The average household energy bill across the UK for a medium user of gas and electricity is £1,293 a year, rising to £1,312 for those who live in Wales.

The study of 2,323 household bill payers said energy bills have rocketed by £633 or 96% in just over five years and an estimated 6.9 million or 27% of households are fuel poor.

Here are the levels of fuel poverty by region, with the percentage of people affected and the average household energy bill over the year:

• Wales, 32%, £1,312.
• East, 31%, £1,283.
• North, 26%, £1,282.
• Scotland, 25%, £1,280.
• South, 24%, £1,295.
• Midlands, 22%, £1,293.
• London, 16%, £1,293.

news.sky.com

The number of unemployed 16 to 24-year-olds went up to 1.016 million, from 991,000 the previous month, according to the Office for National Statistics (ONS).

Youth Unemployment

Total unemployment increased by 129,000 between July and September to 2.62 million, a jobless rate of 8.3%.

However, the number of people claiming Jobseeker’s Allowance last month increased by just 5,300 to 1.6 million, it said, the smallest rise since February.

Employment Minister Chris Grayling told Sky News the eurozone debt crisis was to blame for the soaring number of jobless.

“If you go back four months unemployment was falling, youth unemployment was below 900,000. We’ve seen a big slowdown in the economy, I think as a result of the crisis elsewhere.

Rising Joblessness: What Is The Solution?

He said that the message from business leaders who held a breakfast meeting with Prime Minister David Cameron this morning was that they were “now moving in a very cautious way”.

“They’ve not yet seen a significant impact on their performance but they are holding on, they’re not recruiting, they are taking a cautious approach because of what they are seeing elsewhere in the eurozone.”

However, Paul Kenny, general secretary of the GMB union, said the Government should take some responsibility for the situation.

“For all the economic problems in other parts of Europe, the number of young people out of work is far higher in the UK than in other parts of Europe and is three times higher than in Germany,” he said.

“Instead of attacking pensions and employment rights and making it easier to sack people, the Government should be pursuing policies to create jobs, which is something it is failing miserably to do.”

The rise in youth unemployment is the eighth successive monthly increase and the highest figure since comparable records began in 1992.

Martina Milburn, chief executive of youth charity The Prince’s Trust, said: “Today’s figures are a wake-up call for Britain. It is critical to help young people into work for the future of our economy and society.

“It’s time to redouble our efforts to ensure every young person, no matter what their background, is provided with the support they need and deserve.”

Average earnings increased by 2.3% in the year to September, 0.4% down on the previous month, with average pay now £463 a week.

Long-term unemployment has also increased, with those out of work for more than a year rising by 31,000 to 868,000.

The number of people out of work for more than two years was 422,000, up by 13,000 from the three months to June.

finance.yahoo.com

Shipments from China rose 15.9% from a year earlier, down from a 17.9% growth in September and 24.5% in August.

China export

Meanwhile, imports grew 28.7%, resulting in a trade surplus of $17bn (£10.7bn)

The data has raised fresh concerns about the impact of a global slowdown on China’s export-led growth.

“Export growth continued to drop last month against the backdrop of a sputtering economy in European countries, which is the largest export destination of our country,” said Wang Hu of Guotai Securities in Shanghai.

“With the euro debt crisis spreading, we expect export growth to further decline in the months ahead.”

Domestic boost?

China’s growth in recent years has been led by the success of its manufacturing and export sector, which has helped it become the world’s second-largest economy.

However, economic troubles in the US and eurozone, two of the biggest markets for Chinese goods, have led to a decline consumer demand, raising concerns about the prospects for China’s economy.

On Wednesday, Christian Lagarde, the head of the International Monetary Fund (IMF), called upon China to alter its export-led growth policy and focus on boosting domestic demand in order to sustain growth.

Analysts said the latest data showed that demand in China was growing steadily.

“Import growth is a bit higher than we expected, showing that domestic demand is still resilient,” said Mr Wang.

However, some analysts said the jump in import numbers was not a true indicator of domestic demand.

They said that manufacturers were taking advantage of a drop in commodity prices to build up stock levels and that was impacting the import numbers.

“It’s likely that the inventory building still continues, partly because of the declining global prices,” said Li Cui of Royal bank of Scotland.

“The producers take this opportunity to build their inventories.”

bbc.co.uk