Crodux Plin submits rescue plan for Croatia's Dioki and Dina

11 March 2013 15:54  [Source: ICIS news]

LONDON (ICIS)--Crodux Plin has submitted a takeover and restructuring plan for Croatian polyethylene (PE) and polystyrene (PS) producer Dioki and its low density polyethylene (LDPE) subsidiary Dina Petrokemija, the Croatian oil and gas supplier said on Monday.

The plan, which included a debt-for-equity swap proposal, would be presented to creditors, who have overall claims amounting to approximately Kuna (HRK) 2bn ($342.5m, €263.5m) against Dioki and Dina, for consideration, said Crodux Plin.

The CEO of Crodux Plin, Ivan Cermak, believes Dioki's 50,000 tonne/year PS insallation and 15,000 tonne/year expandable polystyrene (EPS) facility in Zagreb, along with Dina's 90,000 tonne/year LDPE unit in Omisalj on the Adriatic island of Krk, and possibly other units of the two companies, could have a viable future, it added.

The restructuring of Dioki and Dina would hopefully save a substantial proportion of the jobs of the companies' 720 workers, Crodux Plin said.

On 22 February, Turkey's Caliskan group withdrew from an agreement to rescue Dina, sparking a protest from Croatia's finance ministry which had arranged a state guarantee to cover the payment of workers' back wages.

The production units of Dioki and Dina have been mothballed since late 2011 when creditors took court action to freeze the companies' bank accounts.

($1 = €0.77)
($1 = HRK 5.84, €1 = HRK 7.59)

By: Will Conroy
+44 20 8652 3214

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