Nynas news

04/09/2020 11:40

Nynas applies for reorganisation extension - good progress, time to conclude needed

Nynas AB has today applied at Södertörn's District Court for an extension of the company reorganisation for an additional three months. The Administrators fully support and endorse an extension of the reorganisation. A decision from the District Court is expected to be announced on September 17.

Nynas has made good progress in the reorganisation process during the summer with several interested parties and activity is now intensified. Nynas reorganisation however is rather complex, due to the many different stakeholders and large amounts involved. We need to be allowed more time for the process to be successfully completed than we anticipated in June and have therefore filed an application with the Court for an extension with three months until mid-December. The application is fully supported by the Administrators as well as certain larger creditors.

Important progress made

Extensive work has been carried out throughout the reorganisation period, which has resulted in decisive progress. End of March this year, Nynas received an equity contribution from its shareholders in the amount of approximately EUR 119 million. Since May, Nynas is no longer blocked by US sanctions regulations and the company has been able to contract crude oil deliveries and continue discussions about financing under more favourable terms. Shortly after, Nynas, the banking consortium and the main crude oil supplier agreed to extend the due date for their claims against Nynas and payment deferral was granted with June 30, 2021 as the new termination date. Nynas has managed to secure good liquidity and cash flow through a significant reduction in overdue customer payments, a granted deferral of tax payments and an agreement on inventory financing.

Completion expected in 2020

In summary, the reorganisation is well advanced, and intensive negotiations are currently underway involving a selected few parties with a strong interest in Nynas operations.

The objective is now to ensure that the reorganisation can be completed in the coming period through the contribution of new capital, including a concurrent negotiated settlement with the major lenders and the main oil supplier, whereby Nynas other creditors should not be affected beyond the delay that the reorganisation already has caused.

The conditions for a long-term sustainable reorganisation of Nynas operations are good, although additional time is required for the completion. Both Nynas and the Administrators expect a positive outcome of the application and will provide information about the District Court's decision once it has been granted.

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