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

Berry's rebranded Blue Clover expands packaging design reach

January 23, 2015 1:59 pm ET

As design director of Berry Plastics Corp.'s rebranded packaging design studio, Scott Fisher believes the new name of Blue Clover Studios cuts the...    More

Image

Esterform buys Constar UK, doubles PET preform capacity

January 23, 2015 10:07 am ET

Constar UK, once part of global packaging firm Constar International Holdings LLC, has a new owner.    More

Image

Delia to take over as CEO at Amcor

January 22, 2015 10:27 am ET

There will be a leadership change at the helm of Australian packaging company Amcor Ltd. starting in July.    More

Image

European study finds 'no consumer health risk' from current BPA levels

January 21, 2015 9:45 am ET

The European Food Safety Authority (EFSA) has concluded there is no health risk to consumers of any age group from current exposure levels to...    More

Image

Next Generation Films investing $30 million in Ohio expansion

January 20, 2015 4:44 pm ET

Next Generation Films Inc. is betting $30 million on growth in specialty films.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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