Stockholm – Swedish processing oil manufacturer Nynas AB has initiated a formal exit from a reorganisation scheme which it started a year ago to address financial problems.
The company, along with administrators, has distributed a “composition proposal” as well as an administrators’ report to creditors, detailing a debt repayment process in the near future.
The proposal, distributed 26 Oct, offers all unsecured creditors a payment of SEK100,000 (€9,600) – or the lower amount of their claim – which will be paid immediately when the composition is legally binding.
All creditors with claims remaining after receiving payment of SEK100,000 will receive full payment within 12 months after, Nynas said.
According to the company, the administrators "fully support" the composition proposal and there is a "very high" likelihood for reaching a final agreement soon on the long-term ownership and financing of Nynas.
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Stockholm-based oil refiner filed for administration at Södertörn's District Court in December last year as banks had withdrawn credit facilities and it was unable to pay due debts.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.
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.
In September, and as 'an important step’ in the process, Finnish energy group Neste sold its 49.99% stake in Nynas to Bitumina Industries Ltd, thereby making the Dubai-based bitumen specialist the largest shareholder in the Swedish company.