(Bloomberg) — The board of ailing state-owned company Petroleos del Peru submitted its resignation on Tuesday.
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“As several days have passed without the government making a statement, the directors appointed by the general shareholders meeting, unanimously, have presented our resignation,” the members said in a statement. “We consider that we have fulfilled the assigned responsibility, and under current conditions, it is not feasible to continue with the mandate received.”
The resignation comes as the board, chaired by Oliver Stark, had repeatedly asked the government to decide on the future of the cash-strapped company: either bail it out or let it go bankrupt. The board said Tuesday it had been alerting the government about the lack of financial sustainability the company is facing and that they are not responsible for the scope or consequences of any legal regulation that may eventually be approved.
President Dina Boluarte’s administration, however, has stalled for months on making a decision, limiting itself to saying they would not let the company fail without providing further details.
Petroperu’s cash woes stem from the construction of its brand new Talara refinery, which was over budget and faced years-long delays.
–With assistance from Robert Jameson.
(Updates to add chart.)
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