Croatia's shuttered Dioki proposes revised plan to creditors

17 June 2013 12:08  [Source: ICIS news]

LONDON (ICIS)--Croatia-based polymers manufacturer Dioki has submitted a revised restructuring plan to its creditors, arguing that the company has polystyrene (PS) and polyethylene (PE) units that have a viable future, the company said on Monday.

Through a combination of the cancellation of sums of interest and other fees related to creditors' claims, as well as a reduction in the principal sum owed, slightly more than one quarter of Dioki's debts of around Croatian kuna (HRK) 2bn ($357m, €268m) would be wiped out, it added.

If creditors accepted the restructuring plan, Croatian oil and gas supplier Crodux Plin would enter Dioki as a strategic investor, and agree the immediate provision of €27m in working capital, including €2m for start-up costs, Dioki said.

The restructuring plan could also include some debt-for-equity swaps with some creditors, Dioki added.

Dioki's Zagreb-sited 50,000 tonne/year PS installation and 15,000 tonne/year expandable polystyrene (EPS), along with subsidiary Dina Petrokemija's 90,000 tonne/year low-density polyethylene (LDPE) unit, located in Omisalj on the Adriatic island of Krk, are three units which Dioki and Crodux believe could achieve acceptable profitability, Dioki said.

All 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 = HRK 5.60, €1 = HRK 7.46)

By: Will Conroy
+44 20 8652 3214

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