Spain PET producer La Seda de Barcelona files for insolvency

17 June 2013 14:12 Source:ICIS News

LONDON (ICIS)--La Seda de Barcelona (LSB) has filed for insolvency after failing to successfully renegotiate its debts, the Spanish polyethylene terephthalate (PET) producer said on Monday.

The insolvency request was filed with the Commercial Court of Barcelona, according to a company statement submitted to the National Securities Market Commission (CNMV).

LSB, which began refinancing its debts in September last year, said it had been been faced with a “bad market over the past two years, and in particular the oversupply, the high costs of raw materials and insufficient margins.”

The company’s statement was translated to English from Spanish.

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.

By Graeme Paterson