A Libyan sovereign investment fund has sent a letter officially expressing interest in taking over a struggling French oil refinery, as a local court is due to decide whether to order the liquidation of the plant.

"We received at my ministry on Sunday a non-binding letter requesting details of the case from the Libyan sovereign fund," Industry Minister Arnaud Montebourg said Monday in an interview with local radio RTL. Mr. Montebourg publicly asked the tribunal to extend the deadline--which expired Monday--to allow Libya , and possibly other bidders, more time to file an offer. The court will make a decision on Tuesday.

An official at the fund in Libya confirmed a general interest in the refinery, although it doesn't have access to all the plant's details.

The French government opposes the closure of the refinery--it would be the fourth to close in the country since 2009--despite no buyer being found since its original owner, Swiss-based Petroplus, filed for bankrupcty earlier this year.

The chances of Libya investing in the French refining industry are slim, said Geoff Porter, the head of North Africa Risk Consulting Inc.

"I do not think there is political support in Libya to undertake such an investment decision at this time," said Mr. Porter, who advises companies on business in the region. "There would be popular criticism were the deal to be made public because there are so many spending needs domestically that are not being addressed," he added.

As well as the Libyan fund, privately-held oil company NetOil refiled an offer that has already been rejected by the court, said Yvon Scornet, a union leader at the refinery.

Petroplus, which operated five refineries in Europe , filed for insolvency at the beginning of the year. Since then three refineries have been sold and one has been converted into a fuel terminal. The company ran out of cash in 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 .

Earlier this year, the government secured the refinery's continued operation by striking a six-month deal with Royal Dutch Shell PLC (RDSA), due to end in December.

Tadbir Energy, a unit of one of Iran 's largest charitable foundations, the Iman Khomeini Foundation, also remains interested in buying the refinery after first expressing interest for it in April, a person familiar with the matter who is based in Iran told Dow Jones Newswires on Monday.

Tadbir Energy "still has an interest" for the refinery and has "asked [the court] to postpone the decision" on bidders to consider whether it will submit a new offer, the person said.

Tadbir, which owns refining and fuel marketing operations in Iran , would like to bring its industrial skills to the refiner, the person said.

Lawyers have previously said an Iranian acquisition is legal but could face problems due to sanctions.

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