The District Court of Södertörn today decided that the Nynas company reorganisation is now complete, following a creditors meeting where the previously submitted composition proposal was accepted.
“I am happy to announce this very important step for Nynas and that we are now exiting the reorganisation that has been ongoing since December last year. Together with our loyal customers and suppliers, we will vigorously move forward and continue to develop our business in all our global markets. We are ready to take back lost market share and more,” says Bo Askvik, Nynas President & CEO.
The court's decision will be effective on 21 December, and thereafter Nynas will no longer be limited by the reorganisation regulations.
"The situation that Nynas has found itself in due to the reorganisation has placed tough demands on all parties involved, and intolerable pressure on our staff. Our brand is still strong, and this is the result of efforts made by all the loyal and hardworking staff in Nynas. I would also like to express that we are sincerely grateful for the support received from our customers and suppliers. Our partnerships truly go beyond mere commercial transactions," says Bo Askvik.
Nynas comes out of the reorganisation as a stronger company with 5-year secured financing and a strong balance sheet.
During the reorganisation process, extensive work has led to decisive progress. Following ownership changes, Nynas has no longer been subject to US sanction regulations since May. This has meant that the company has been able to contract crude oil deliveries and to continue financing discussions under more favourable terms. During the reorganisation, 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.
The main achievement, however, is the successful shift to a new blend of feedstock during the past year. This was necessary due to US sanctions against the export of Venezuelan crude, which used to be a major feedstock for the company. Several new feedstocks have now been approved and processed following an impressive change programme at the refineries and our supply chain. Nynas can now run our refineries with 100 % non-Venezuelan feedstock without affecting the strict demands of our consistent product quality. All necessary permits from the authorities needed for running new feedstocks have been secured. The product recipes have been adapted at record speed and Nynas has the necessary approvals from its customers across the world.
With the new feedstock portfolio and knowledge gained on how to further optimise production at our refineries, we will increase and optimize the utilisation, as we have the capacity to produce higher volumes. Nynas has well maintained, specialised refineries and an unmatched supply chain and industry-leading expertise.
The continuing restructuring of the refining industry, following the IMO 2020 legislation and stricter performance requirements, will lead to a higher demand for specialised producers both in bitumen and specialty oils. This change is further amplified by the Covid‐19 pandemic that has led to an earlier than expected shutdown of Group I plants. To meet the shortage of Group I oils, Nynas has developed the NYBASE® range of products with similar properties and performance. Nynas expects growth also in the bitumen market, primarily from increased spending on road maintenance.
Nynas is well positioned to build on its strengths and to embark on the growth path we have planned for.