Imbert: Company could implode

FINANCE Minister Colm Imbert last night warned that Petrotrin “will implode and collapse within the next month” if it cannot secure a government guarantee of $1.2 billion on or before October 15.

Addressing a news conference at the Port of Spain International Waterfront Centre hours after the Industrial Court granted an injunction against Petrotrin from terminating its workers, Imbert said, “This decision has profound implications for the economy of TT.” After disclosing that Petrotrin will file an appeal against the injunction in the Court of Appeal today and Attorney General Faris Al-Rawi will seek the court’s leave to join that appeal, Imbert said he received a letter yesterday from Petrotrin requesting financial support to the tune of $1.2 billion.

He explained this money includes facilities of US$100 million, US$50 million and US$22.2 million with Deutsch Bank, Citibank and Republic Bank respectively. He said unless Petrotrin gets government guarantees for these facilities within the next week, “the company will not be able to pay its bills and essentially will not be able to continue.”

Imbert said once he approves the guarantee, it will cause the public debt to increase immediately. He also said Petrotrin indicated that it could be seeking additional government guarantees. He said unless the company is allowed to proceed with its restructuring and shed its loss-making parts, this”will affect the entire country.”

He added that Petrotrin’s total debt is between $12 to $13 billion. Stressing he has no intention of telling the court want to do, Imbert said, “We need clarity from the court.”

Imbert also disclosed that Petrotrin received its last crude oil shipment on October 5. He said Petrotrin will not be purchasing any more crude oil because each shipment costs between $200 and $400 million. He also said Petrotrin’s bankers see the company as “a very risky entity unless it restructured for profitability.”

Also responding to the granting of the injunction was Opposition Leader Kamla Persad-Bissessar who said it is a historic victory for the workers and for the rule of law in TT.

“The court’s ruling further exposes the repressive, exploitative and anti-worker stance of the Rowley regime and its disdain for proper industrial relations practice, including appropriate grievance procedures.

“I applaud the victorious Petrotrin workers and their representative trade union, OWTU, on their courage and determination to challenge this oppressive PNM government.”

She said the ruling also supports her assertion during her response to the budget last week Friday, that the company was acting in contempt of court by issuing termination letters while there was a challenge before the court.