Stockholm – Nynas AB (publ) has filed for a company reorganisation as it has been unable to secure loan extensions from its banks or pay due debts, the company announced 13 Dec.
Nynas linked the situation to US sanctions against its 50% shareholder Venezuelan PDVSA. These financial restrictions, it said, had eroded Nynas profitability since August 2017.
The request for a reorganisation at Södertörn's District Court, was made as the company found it could not pay due debts, said Bo Askvik, acting CEO of Nynas AB
“Despite loyal customers and dedicated work by our employees, we have not been able to avoid the situation that has arisen," said Askvik.
The Nynas boss was, however, hopeful that the company could be reorganised “under controlled forms” and continue to supply customers.
Indeed, insisted Askvik: “In the long term, we see good conditions to continue the business. Nynas has a strong offering with good demand from the market.”
Among other issues. Nynas has recently been stopped from buying crude oil from Venezuela. Supply, it noted, has been replaced with other crude oils leading to increased raw material costs.
Plans have been drawn up to free Nynas 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.
Mikael Kubu, Ackordscentralen and Lars Eric Gustafsson, Hamilton Advokatbyrå, have been appointed as administrators in Nynas AB (publ) by the district court.