Italian-based PET producer Mossi Ghisolfi Group file for in-court settlement

17 October 2017 17:47 Source:ICIS News

LONDON (ICIS)--Italian-based polyethylene terephthalate (PET) producer Mossi Ghisolfi Group has filed for an in-court settlement with its creditors, the company announced on Tuesday.

The firm filed for “concordato preventivo” with the Tribunal of Alessandria, in accordance with article 161 sixth paragraph of the Bankruptcy Law, in order to ensure equal treatment of creditors.

This filing will affect its Mossi & Ghisolfi (M&G), M&G Finanziaria, Biochemtex, Beta Renewables, Italian Bio Products, IBP Energia, M&G Polimeri and Acetati Immobiliare companies.

“The companies are studying a proposal for an arrangement that will allow their overall activities to continue as a going concern, although they cannot exclude alternative solutions at the end of the ongoing technical assessments,” said the company.

On Monday, Mexican purified terepthalic acid (PTA) supplier Alpek said that M&G had shut down its 560,000 tonne/year Altamira plant because of liquidity constraints.

Alpek also announced on Monday that it had a third quarter consolidated net loss  because of charges connected to M&G.

The Mexican producer said in September that M&G had missed feedstock payments to Alpek.

Therefore, Alpek stopped supplying PTA to M&G’s Altamira, Mexico and Suape, Brazil facilities.

It was revealed, furthermore, by county officials at the end of September that M&G will stop producing at its 250,000 tonne/year Mason county, West Virginia, US plant.

Since then M&G disclosed plans in early October to release 100 workers at its 1.1m tonne/year PET and 1.3m tonne/year PTA plants under construction in Corpus Christi, according to information ICIS obtained from the Texas Workforce Commission.

Construction contractor Fluor already released 274 workers from the PET plant being built by M&G in Corpus Christi, Texas in September.

Additional reporting from Amanda Hay, Al Greenwood and David Haydon.

By Pavle Popovic