Stockholm – Nynas AB has extended its timeline for a reorganisation scheme, which was launched late last year following the company's failure to secure loan extensions from its banks or pay due debts.
The Stockholm-based process oils manufacturer gained approval from a Swedish court for an extension to its reorganisation plan for another three months, until 15 Sept, the company announced 15 June.
Nynas filed for administration at Södertörn's District Court in December last year as banks had withdrawn credit facilities and it was unable to pay due debts.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 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 programme, the company reduced PDVSA’s share ownership to 15% in May, which consequently led to OFAC's lifting of sanctions on Nynas.
“Extensive work has been carried out throughout the reorganisation, which resulted in decisive progress last month,” said Nynas in its 15 June statement.
The conditions, it added, are good for a long-term sustainable reorganisation of Nynas.
Nynas said it believed that it was possible to complete the reorganisation in the coming three-month period.