La Seda takes shelter of voluntary insolvency

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: June 24, 2013 1:00 pm ET
Updated: June 24, 2013 1:02 pm ET

Related to this story

Topics Materials, Materials Suppliers

Troubled Spanish PET packaging group La Seda de Barcelona, struggling since last autumn to achieve a debt restructuring agreement with its creditors, has finally thrown in the towel.

After several abortive attempts to reach a refinancing deal, satisfactory both to its lenders and shareholders, the company has ran out of time. Now, directors have taken the remaining option allowing LSB to continue in business and have filed for voluntary insolvency.

The Catalan group was forced into the decision when it failed to secure approval from the lenders of 75% of its syndicated loan for a refinancing plan proposed by the syndicate steering committee in April. LSB managed to win consent from those lending a majority of the sum, but fell short of the required proportion by the deadline, it revealed.

LSB, which has syndicated bank loans amounting to some 462 million euros and total debt of more than 600 million euros, admitted that the refinancing process, essential to guarantee the group's normal activity, is now blocked.

In a statement, Barcelona-based LSB said it regretted failing to reach a deal to satisfy both shareholders and its main lenders, "despite the enormous work and effort deployed by the board of directors."

It said voluntary insolvency should "grant viability to the group" and is the best possible alternative to protect the rights of all its lenders.

LSB began the debt refinancing process back in September 2012 because of "adverse market conditions" over the past two years. It was hit by oversupply, high raw material prices and poor margins, it said.

Taking the voluntary insolvency route affords the group some shelter from its creditors and allows it another chance of negotiating a new deal with them.


Comments

La Seda takes shelter of voluntary insolvency

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: June 24, 2013 1:00 pm ET
Updated: June 24, 2013 1:02 pm ET

Post Your Comments


Back to story


More stories

Image

Oxford Polymers adds compounding capacity

January 30, 2015 1:16 pm ET

Materials maker Oxford Polymers has increased its compounding capacity by installing a new single-screw extrusion line.    More

Image

Marval's next generation expands capacity

January 30, 2015 1:27 pm ET

MAMARONECK, N.Y. — There’s a lot of history at Marval Industries Inc., but the 59-year-old compounding firm also is looking toward the...    More

Image

Lubrizol buys Brazil-based coatings technology manufacturer

January 30, 2015 11:50 am ET

Specialty chemicals company Lubrizol Corp. of Wickliffe, Ohio, said it has acquired a Brazilian company that makes coatings technology for products...    More

Image

2014 sees modest sales increase, but profit decrease, for Dow Chemical

January 29, 2015 4:20 pm ET

UPDATED — Dow Chemical Co. delivered modest sales growth in 2014, but the firm's profit took a tumble.    More

Image

Resin prices continuing to tumble

January 29, 2015 2:24 pm ET

The ongoing slide in crude oil prices is taking commodity resin prices down as well.    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