17 November 2009 16:19 [Source: ICIS news]
PRAGUE (ICIS news)--BorsodChem has requested that its lenders agree to extend a moratorium on its debt repayments until the middle of January 2010 to allow it time to finalise a financial restructuring plan, the Hungarian isocyanates and polyinyl chloride (PVC) producer said on Tuesday.
The restructuring plan could be completed by the end of December, BorsodChem said.
Obtaining approval from the Hungarian government for a €100m ($149m) bail-out loan from state-owned development bank MFB would be key to achieving that aim, BorsodChem said.
BorsodChem has to reach an agreement with some 60 banks and other lenders on restructuring about €1bn in debt.
Part of the debt is made up of mezzanine loans held by Chinese methyl di-p-phenylene (MDI) producer Yantai Wanhua.
BorsodChem’s owner, UK-based private equity fund Permira Advisers, and Yantai Wahua have reached an agreement in principle that allows the latter to become a minority shareholder in BorsodChem in return for surrendering part of the debt and supporting the financial restructuring plan.
BorsodChem added that its profitability was improving month by month as export economies picked up.
($1 = €0.67)
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