Croatian polymers producer Dioki forced to adjourn restructuring vote

20 August 2013 12:39  [Source: ICIS news]

LONDON (ICIS)--Mothballed Croatian polymers producer Dioki was forced to adjourn a meeting scheduled to hold a vote on its revised restructuring plan because summer vacations prevented the attendance of enough creditors, the company said on Tuesday.

The meeting would be reconvened within two weeks in a fresh bid to convince a majority of creditors that the company, backed by potential strategic investor and Croatian oil and gas supplier Crodux Plin, had found a viable way of settling its debts and resuming production, it added.

A revised restructuring plan backed by creditors must be in place by mid-October at the latest, Dioki said.

A majority of creditors rejected the initial restructuring plan that was proposed by Dioki on 20 June.

Dioki's debts to creditors, including national electricity provider HEP, amount to approximately Croatian kuna (HRK) 2bn ($354.0m, €265.3m).

Crodux Plin has said it stands ready to agree the immediate provision of €27m in working capital, including €2m for start-up costs, if it is brought on board as a strategic investor.

All of Dioki’s units have been mothballed since late 2011, when creditors froze the companies' bank accounts through court action.

($1 = €0.75, $1 = HRK5.65, €1 = HRK7.54)

By: Will Conroy
+44 20 8652 3214

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