La Seda must split under proposed refinancing deal

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: May 1, 2013 1:54 pm ET
Updated: May 1, 2013 1:55 pm ET

Related to this story

Topics Packaging, Blow Molding

BARCELONA, SPAIN — Spanish PET and packaging group La Seda de Barcelona (LSB) announced it has reached an outline deal with banks coordinating its syndicated loan in the process of renegotiating its debts.

Based on a refinancing proposal put forward by the loan coordination committee, the "tentative" agreement must still be approved by a majority of the group's lenders before it is confirmed, the Catalan company said in a statement to CNMV, Spain's stock market regulator.

Key terms of the deal mean that Barcelona-based LSB must restructure the industrial group, with financial and operational separation of its successful APPE packaging business from the PET polymer and recycling divisions.

LSB must agree to restructure its senior or secured debt which would be implemented through a court-approved Scheme of Arrangement in the United Kingdom. In addition, a super senior credit facility of 30 million euros would be granted.

"The company feels that this agreement would guarantee the industrial group's continuity, while permitting it to expand its core packaging business, ensuring the necessary investment in order to boost its competitiveness and growth," said the board vice chairman José Luis Morlanes in the SE statement.

Now it is up to lenders and LSB's shareholders to back this deal in view of the failure of the last capital plan submitted by the Spanish group.


Comments

La Seda must split under proposed refinancing deal

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: May 1, 2013 1:54 pm ET
Updated: May 1, 2013 1:55 pm ET

Post Your Comments


Back to story


More stories

Image

PolyOne denies report it's bidding for Klöckner Pentaplast

October 16, 2014 11:44 am ET

UPDATED — Compounding leader PolyOne Corp. is denying a report that it bid as much as $2 billion for film and sheet major Klöckner Pentaplast...    More

Image

New Amcor, Method project taking sustainability to a platinum level

October 16, 2014 11:28 am ET

Amcor Rigid Plastics will have a bottle production operation within a factory which is aiming to be the world's first LEED platinum certified...    More

Image

Peiyu looks at Vietnam expansion

October 15, 2014 11:21 am ET

Taiwanese packaging firm Peiyu Plastics Corp. is making a big bet on Vietnam, with plans to significantly upgrade its factory there to tap local...    More

Image

Study predicts rigid bulk packaging market will hit $7.3 billion by 2018

October 14, 2014 2:37 pm ET

Rigid bulk packaging — of which plastic is the leading material used — is expected to increase by 4 percent annually in the United States ...    More

Image

Cosmo Films evaluating coating in US

October 14, 2014 6:00 am ET

Cosmo Films Ltd. may start chemical coating of films in the United States.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events