Stockholm – Nynas AB has completed its year-long reorganisation process following the approval of a ‘composition proposal’ by creditors, the District Court of Södertörn decided on 30 Nov.
The court's decision will be effective on 21 Dec, and thereafter the Swedish processing oil manufacturer will no longer be limited by reorganisation regulations, Nynas said in a 30 Nov statement.
"The situation that Nynas has found itself in due to the reorganisation has placed tough demands on all parties involved, and intolerable pressure on our staff,” said Bo Askvik, Nynas president & CEO following the court decision.
With the latest court decision, Askvik went on to say, the company will “vigorously move forward” and is “ready to take back lost market-share and more.”
The Stockholm-based oil refiner filed for administration at Södertörn's District Court in December last year as banks had withdrawn credit facilities and it was unable to pay due debts.
The financial problems were linked partially to sanctions imposed by the US treasury department’s office of foreign asset control (OFAC) on Nynas’s 50% shareholder PDVSA of Venezuela.
As part of the restructuring, the company reduced PDVSA’s share ownership to 15% in May, which consequently led to the OFAC's lifting of sanctions on Nynas.
“This has meant that the company has been able to contract crude oil deliveries and to continue financing discussions under more favourable terms,” the oil refiner said in its 30 Nov statement.
In addition, Nynas said it had to switch from Venezuelan crude, as a major feedstock, due to US sanctions.
The company now has approved and processed “several new feedstocks” following a change programme at its refineries and supply chain.
“Nynas can now run our refineries with 100 % non-Venezuelan feedstock without affecting the strict demands of our consistent product quality,” it said.
With the new feedstock portfolio and the production upgrades, Nynas said it is now able to increase and optimise utilisation at its refineries and increase volumes.
Furthermore, the Stockholm company said it had secured "good liquidity and cash flow" during the reorganisation, due to a reduction in overdue customer payments, a granted deferral of tax payments and an agreement on inventory financing.
"Nynas comes out of the reorganisation as a stronger company with five-year secured financing and a strong balance sheet," it said.