Buyer of two LSB plants still awaiting court’s final decision

01 April 2014 17:49 Source:ICIS News

LONDON (ICIS)--Spanish group Cristian Lay was on Tuesday still waiting for an official notification from the Commercial Court in Barcelona for permission to acquire two plants formerly owned by bankrupt polyethylene terephthalate (PET) producer La Seda de Barcelona (LSB), the company said.

Word from the court on the deal had been expected on 1 April, according to a company spokesman. 

LSB entered liquidation process on 3 January and since then its assets have been up for sale. Under Spanish insolvency laws, the corresponding Court managing the bankruptcy process is entitled to mandate who among different bidders is entitled to keep the assets, taking into account social and economic impacts of the decision.

Cristian Lay had its eyes on 1 April as the date for the Court to confirm it can go ahead with its €15m acquisition of the two plants, but the decision has been delayed according to a spokesperson from the company.

“We were expecting official notification today [Tuesday], but nothing has been said yet. Nevertheless, we are confident it will be publicly notified this week,” said the spokesperson.

She also added that negotiations regarding storage units near the plants, which Cristian Lay has not acquired but rented, are still ongoing an that may be the cause of the delay.

“Nothing major, but details on those property renting agreements are still ongoing. There will not be any problem [in pursuing the acquisitions] and we are confident we’ll be able to go ahead with the plan,” added Cristian Lay’s spokesperson.

The two plants are an 170,000 tonne/year polyethylene terephthalate (PET) unit in El Prat de Llobregat, Barcelona, and a 135,000 tonne/year ethylene oxide (EO) and 100,000 tonne/year ethylene glycol (EG) plant belonging to LSB subsidiary Industrias Químicas Asociadas (IQA) in Tarragona, Spain.

Additional information by Caroline Murray.

 

By Jonathan Lopez