Morocco oil refiner Samir informed it was planning a capital increase of $1.04b in an effort to end the company’s financial difficulties. As Morocco’s only refinery, its closure would make the country entirely reliant on imports and could also impact Moroccan banks exposed to Samir’s debt, experts said to Reuters

Samir, controlled by Corral Petroleum Holdings, announced in August it was halting production at its 200,000 bp/d Mohammedia refinery.

Morocco’s tax administration have since seized the company’s bank accounts in pursuit of a $1.3 billion tax claim, Reuters reported.

Saudi billionaire Mohammed al-Amoudi, owner of Corral Holdings, which controls 67.26% of Samir, has been negotiating with the Moroccan government to find a compromise to end the company’s crisis.

Samir lately reported a $223m first-half loss. It posted a record net loss of $354.52m at the end of 2014 mainly due to the revaluation of inventory after oil prices fell.

Samir shares have lost around 50% in 2015 on the Casablanca stock exchange.