Czech firm Spolchemie confident of meeting debt deadline

05 November 2010 16:47  [Source: ICIS news]

PRAGUE (ICIS)--Spolchemie is confident of meeting an end-of-year deadline for the refinancing of its debt of about koruny (Kc) 2.6bn ($150.6m, €105.9m) with five banks, the Czech synthetic resins producer said on Friday.

In August the creditors, which hold all Spolchemie's assets as collateral, agreed to an extension of the refinancing deadline in order to give the company more time to implement a restructuring plan.

Spolchemie says that the plan has begun to pay off, with sales revenues of Kc3.2bn for the first nine months of 2010, Kc700m higher than for the same period in 2009.

Net profit for the first nine months of 2010 stood at Kc180m, compared with a net loss of Kc340m for the whole of 2009, the company said.

Responding to a report in Czech daily Lidove noviny that two creditors were turning against the restructuring plan, Spolchemie CEO Francois Vleugels referred to the company's latest press release.

In the press release, he said: "The positive results have been achieved thanks to close cooperation of the financing banks, the management and the majority shareholder of the company. Each step which we have together taken has shown that Spolchemie has the potential to overcome the crisis."

Spolchemie operates two 30,000 tonne/year epoxy resin plants at Usti nad Labem in the north of the Czech Republic.

($1 = Kc17.27, €1 = Kc24.54)

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By: Will Conroy
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