01 October 2013 15:00 [Source: ICIS news]
LONDON (ICIS)--Croatian low density polyethylene (LDPE) producer Dina Petrokemija has taken an important step towards restarting its indefinitely mothballed production plants, with a court having approved a pre-bankruptcy settlement, the company said on Tuesday.
The approval meant Dina Petrokemija could proceed with a restructuring plan that would see it raise capital to pay creditors and workers through the sale of land at its production site on the Adriatic island of Krk to the state property management agency (DUUDI), it added.
DUUDI required the land for the construction of a liquefied natural gas (LNG) terminal, the company said.
With the court approval of the pre-bankruptcy settlement and the completion of the land transaction, there should be no more obstacles to restructuring steps that should lead to the restart of Dina Petrokemija's 90,000 tonne/year LDPE unit, it added.
Dina Petrokemija's restructuring is to form part of a larger restructuring being pursued by its parent company, Zagreb-based polyethylene (PE) and polystyrene (PS) producer, Dioki.
Dioki is attempting to have revised restructuring proposals accepted by a majority of creditors by mid-October, having had to adjourn a creditors' vote in August.
Croatian oil and gas supplier Crodux Plin is on standby to become a strategic investor in Dioki if an agreement can be obtained with creditors.
All of Dioki’s units – including a 90,000 tonne/year cracker, a 50,000 tonne/year PS installation and a 15,000 tonne/year expandable polystyrene (EPS) plant – have been mothballed since late 2011, when creditors froze the companies' bank accounts through court action.
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