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

Investment firm specializes in emerging polymer firms in Ohio

August 21, 2014 3:20 pm ET

A plastics market veteran is working with an investment firm and a research foundation to help commercialize polymer technology in the Buckeye State.    More

Image

Bayer, SCAC partner on water reuse project

August 21, 2014 12:48 pm ET

Bayer MaterialScience (BMS) and Shanghai Chlor-Alkali Chemical Co. Ltd. (SCAC) have entered into a preliminary agreement for the reuse of waste water ...    More

Image

Automakers look under the hood for the next lightweighting opportunities

August 20, 2014 1:06 pm ET

The automotive industry's current favorite target for lightweighting efforts is the powertrain, according to a recent survey.    More

Image

ISO publishes international standard for measuring phthalates in toys

August 19, 2014 10:40 am ET

The Geneva-based International Organization for Standardization (ISO) has published an international standard on phthalates used as plasticizers in...    More

Image

RTP expands very long fiber thermoplastic production to Mexico

August 19, 2014 9:47 am ET

RTP Co. has introduced very long fiber reinforced compounds at its Monterrey, Mexico, facility.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events