Croatia’s Dioki to file for bankruptcy after losing creditors’ vote

11 October 2013 12:01  [Source: ICIS news]

LONDON (ICIS)--Polymers producer Dioki is to file for bankruptcy after failing to persuade enough creditors to agree to a revised restructuring plan, the Croatian company said on Friday.

Only 41.12% of creditors represented at a vote – who have claims against Zagreb-based Dioki amounting to kuna (HRK) 905.4m ($161.1m, €119.0m) – voted ‘yes’ to the plan, short of the 66.7% needed for its approval, it added.

However, following the vote, Dioki subsidiary Dina Petrokemija, located on the Adriatic island of Krk, said it hoped to use a court-approved pre-bankruptcy settlement obtained in early October to attract a strategic investor that could ensure its survival and a restart of its 90,000 tonne/year low density polyethylene (LDPE) unit.

The Zagreb Stock Exchange has suspended trading in the shares of Dioki which mothballed all its plants – including a 90,000 tonne/year cracker, a 50,000 tonne/year polystyrene (PS) installation and a 15,000 tonne/year expandable polystyrene (EPS) plant – in late 2011 after creditors including its energy suppliers froze the company’s bank accounts through court action.

Croatian oil and gas supplier Crodux Plin was on standby to become a strategic partner in Dioki if a restructuring agreement could be obtained with creditors.

($1 = €0.74, $1 = HRK5.62, €1 = HRK7.61)

By: Will Conroy
+44 20 8652 3214

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