18 March 2013 14:57 [Source: ICIS news]
LONDON (ICIS)--Croatia-based polymers manufacturer Dioki has entered into a pre-bankruptcy process, one of the bidders for the company said on Monday, which it added could be utilised to save production units. Crodux has requested that Dioki's board invite it to financially and operationally restructure the company in line with pre-bankruptcy settlements, as part of a plan that would see it take a majority stake in the producer, it added.
Creditors have been given one month to state their claims, with the first pre-bankruptcy hearing scheduled for 23 April, Dioki said.
Crodux Plin has estimated that polyethylene (PE) and polystyrene (PS) company Dioki and low density polyethylene (LDPE) subsidiary Dina Petrokemija, which would be included in the proposed restructuring, face claims from creditors amounting to approximately Croatian kuna (HRK) 2bn ($341.3m, €263.9m).
The restructuring plan would include a debt-for-equity swap with some creditors, Crodux Plin said.
Dioki's 50,000 tonne/year PS installation and 15,000 tonne/year expandable polystyrene (EPS) facility in Zagreb, along with Dina's 90,000 tonne/year LDPE unit located in Omisalj on the Adriatic island of Krk, are three units which have a viable future, it added.
The potential future of other units was still under consideration, Crodux Plin said.
The production units of Dioki and Dina have been mothballed since creditors took court action to freeze the companies' bank accounts in late 2011.
($1 = €0.77)
($1 = HRK 5.86, €1 = HRK 7.58)
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