Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
October 25, 2017 02:00 AM

M&&G Polymers USA files for Chapter 11 protection

Frank Esposito
Senior Staff Reporter
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Mossi Ghisolfi Group
    M&&G Polymers USA parent company Mossi Ghisolfi Group filed for protection with Italian courts Oct. 17.

    PET resin maker M&G Polymers USA LLC filed for Chapter 11 bankruptcy protection Oct. 24 in Delaware — one week after its parent firm, Mossi Ghisolfi Group, took the same step in in its home nation of Italy.

    In the U.S. Bankruptcy Court filing in Wilmington, Del., Houston-based M&G Polymers listed liabilities of between $100 million and $500 million and assets of between $500 million and $1 billion. Dennis Stogsdill has been named chief restructuring officer for the firm.

    M&G's largest unsecured creditor is PET and feedstocks supplier Indorama Ventures of Montreal, which is owed almost $57 million. Petrochemicals supplier Shell Chemical LP of Houston ranks second on that list, being owed almost $20 million.

    M&G Polymers' assets include a PET plant in Apple Grove, W. Va.; a corporate office in Houston; and an R&D center in Sharon Center, Ohio. The firm also is building a massive PET and feedstocks complex in Corpus Christi, Texas, which has been the source of financial trouble.

    M&G Group, a global supplier of polyester resins, feedstocks, fibers and biofuels, officially filed for the arrangement with creditors procedure — known in Italy as “concordato preventivo” — on Oct. 17 to ensure equal treatment of creditors, according to a posting on the firm's website.

    The companies “are studying a proposal” for an arrangement that will allow their overall activities to continue as a going concern, officials said in the posting, although they cannot exclude “alternative solutions.”

    A company spokesman told Plastics News in an email that the filings in Delaware and Italy are not connected.

    Tortona-based M&G's struggles include its inability to finance the Corpus Christi project — known as Project Jumbo. Numerous contractors working at the site have said that they have not been paid. Construction contractor Fluor Enterprises laid off almost 300 workers at the site in September.

    M&G also owes $49 million to Mexican conglomerate Alpek SAB de CV for supplies of PET feedstock purified terephthalic acid (PTA). In September, Alpek announced that it was stopping shipments of a PET feedstock to two plants operated by M&G in Mexico and Brazil as a result of the debt.

    According to published reports, M&G has stopped PET production at its 1.2 billion-pound capacity plant in Altamira, Mexico. The firm also had filed notice with local officials that it would stop production at its PET plant in Apple Grove, W.Va., which has annual production capacity of almost 800 million pounds.

    Alpek made the unusual move of announcing the stopped shipments and the unpaid debt in a news release. In the same release, Alpek officials added that the firm “anticipates difficulties” for M&G to complete the massive PET project in Corpus Christi.

    Alpek, which also owns North American PET maker DAK Americas, had agreed to distribute more than 1 billion pounds of PET made at the new M&G unit. In its third quarter financial filing, Alpek said it had $643 million of asset impairment exposure from M&G, as well as a $223 million tax credit.

    “Volume, revenues and EBITDA were negatively impacted in [the third quarter of 2017] by the current M&G shutdown,” Alpek officials wrote in the report. “Alpek has limited visibility at this time to provide a reliable 4Q17 outlook.”

    In mid-September, an M&G spokesman told PN that the firm “is in active dialogue with its key stakeholders regarding its near-term needs.” Earlier this year, M&G officials said that problems with a former construction contractor at the Corpus Christi plant would not stop the facility from opening on time, later this year.

    Alpek has annual sales of almost $5 billion, employing more than 5,000 at 23 plants making resins, chemicals, feedstocks and fibers throughout North and South America. Its DAK business unit is based in Charlotte, N.C.

    M&G ranks as one of North America's largest PET makers, with a North American headquarters in Houston.

    RECOMMENDED FOR YOU
    Pipe extruder fined for child labor law violation
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    PepsiCo on a ‘multiyear journey' toward bioplastics
    2
    Solar cell film producer investing $147M in Georgia
    3
    Michigan injection molder doubling space to support growth
    4
    Biden sets US goal to replace 90% of plastics with biomaterials
    5
    Plastics recycling must do better by consumers to succeed, professor says
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified