By: EUROPEAN PLASTICS NEWS
June 18, 2013
Spanish packaging group La Seda de Barcelona (LSB) has announced that it will begin insolvency proceedings.
According to Reuters, the Barcelona-based company has failed to reach a deal with creditors. The company has been in talks with lenders since last year after struggling with high raw material prices.
The group tripled its annual loss to around 134 million euros last year, due chiefly to a slump in European PET demand, over supply and high raw material prices.
However, the insolvency announcement comes only weeks after LSB said it had reached an outline deal with banks to renegotiate its debts.