BorsodChem seeks waiver from creditors on €1.15bn loan

05 March 2009 17:39  [Source: ICIS news]

PRAGUE (ICIS news)--BorsodChem has asked creditors for a waiver to enable it to avoid breaching covenants on a €1.15bn ($1.46bn) loan, the Hungarian polyvinyl chloride (PVC) and isocyanates producer said on Thursday.

The company is jointly owned by private equity firms Permira and Vienna Capital Partners.

Permira led a €1.63bn buyout of the producer in 2006 by deploying €1.15bn of debt arranged by Lehman Brothers, Royal Bank of Scotland and UniCredit.

BorsodChem had announced in early February that it would have to cut up to one-fifth of its workforce because of declining orders caused by recession-hit markets.

It recently suspended the planned cuts after the Hungarian government agreed to explore ways of offering the company financial assistance to protect the jobs.

($1 = €0.79)

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By: Will Conroy
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