Stockholm – Nynas AB has extended its timeline for a reorganisation scheme, launched following its failure to secure loan extensions from its banks or pay due debts, the company announced 24 Jan.
The Swedish process oils manufacturer went into administration in December last year, citing US sanctions on its 50% shareholder Venezuelan PDVSA as the reason.
At a creditors’ meeting 24 Jan, the Södertörns District Court agreed that the company's reorganisation bid should continue for three months until 13 March.
In addition, all creditors that are Nynas suppliers will receive a ‘super priority’ for deliveries up to a maximum amount of SEK3.5 million (€29,000), the court agreed.
In its December 2019 filing, Nynas reported that financial restrictions on its Venezuelan shareholder had eroded profitability since August 2017.
The company said it was working on freeing itself from sanctions in early 2020, and to raise profitability by changing the raw material mix for its refineries.
Founded in 1928, Nynas produces speciality oils for various industries including the tire & rubber sector. It employs 1000 people, about half of whom are in Sweden.
Production takes place in three own refineries in Nynäshamn, Gothenburg and Hamburg, Germany as well as in a jointly owned refinery in the UK.