Stockholm – Nynas AB has extended its timeline for a reorganisation scheme for the fourth time this year, saying it expects to complete the process by the end of 2020.
The reorganisation process was launched late last year following the company's failure to secure loan extensions from its banks or pay due debts.
In a 4 Sept update, the Stockholm-based process oils manufacturer said it had applied for a three-month extension to the plan until 15 December, as work was “complex due to the many different stakeholders and large amounts involved.".
“We need to be allowed more time for the process to be successfully completed than we anticipated in June and have therefore filed an application with the court for an extension with three months from 15 Sept,” the company said.
Nynas filed for administration at Södertörn's District Court in December last year as banks had withdrawn credit facilities and it was unable to pay due debts.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.
According to Nynas, the reorganisation has so far resulted in “decisive progress”, including an equity contribution of €119 million from shareholders in March.
In addition, as part of the restructuring programme, the company reduced PDVSA’s share ownership to 15% in May, which consequently led to the OFAC's lifting of sanctions on Nynas.
“Since May… the company has been able to contract crude oil deliveries and continue discussions about financing under more favourable terms,” Nynas said.
The Stockholm-based supplier said the reorganisation process is “well advanced”, and intensive negotiations are currently underway. The company expects to conclude the process by the end of the year