La Seda de Barcelona's insolvency procedure continues

27 June 2013 11:58  [Source: ICIS news]

LONDON (ICIS)--La Seda de Barcelona (LSB) is continuing down the path of insolvency and a proposed sale of its chemical factories despite earlier suggestions it was about to finalise a debt refinancing deal, a company source said on Thursday.

The three Artenius polyethylene terephthalate (PET) plants in Spain, Turkey and Italy, its recycling site in Italy, as well as  IQA's ethylene oxide (EO) and ethylene glycol (EG) units and "all relative business with chemical products'" are likely to go up for sale.

“The first idea, logical idea, is to sell the factory as units of production,” according to the source.

Referring to APPE, LSB's successful preform business, the source said: "It is very, very clear in [the president's] proposal that he likes to keep APPE."

The source made no comment regarding the new Simpe plant in Italy.

On Tuesday this week, LSB said it had received preliminary approval from creditors representing 75.40% of the company’s syndicated debt for the plan, above the legal threshold necessary to proceed with a refinancing. More than half the company’s debtholders had agreed in principle with the refinancing measures, La Seda added.

However, so far there has been no update on whether the refinancing deal has been finally approved or not.

"We have a new president with a new plan. We don't know what will come. Time will tell…We continue as [per] last Tuesday," the source said.

In May, LSB subsidiary Artenius announced it would not be restarting its PET plant in Volos, Greece, which had been idled since December last year.

The company was forced to file for insolvency on 17 June after failing to renegotiate its debts.

Artenius operates a 140,000 tonne/year unit at Adana in Turkey and a 170,000 tonne/year site at El Prat de Llobregat, Spain, both of which are running at full capacity.

“Turkey is at full capacity and oversold,” the source said.

The company also has a 200,000 tonne/year plant in San Giorgio di Nogaro in Italy that is focused on technical polymer production and can run on campaigns.

Artenius' new 150,000 tonne/year PET Simpe plant at Acerra, Italy, is near completion.

Artenius’s Erreplast recycling plant is located in Caserta, Italy. The facility has a treatment capacity of 2,700 kg/h in input or 20,500 tons/year of end-use PET bottles, according to the company website.

“[Artenius] has not recieved any cancellation [of orders] or reduction due to the situation of insolvency,” according to the source.

Industrias Quimicas Asociadas LSB (IQA), the EO/EG producer in Tarragona, Spain, was operating close to capacity a week ago, albeit 20% lower than it was earlier in June.

IQA has capacity to operate 100,000 tonnes/year of EG and 135,000 tonnes/year of EO at the site, according to ICIS data.

($1 = €0.77)

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By: Caroline Murray
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