STOCKHOLM—Nynas A.B. has completed its year-long reorganization process following the approval of a "composition proposal" by creditors, the District Court of Sodertorn decided Nov. 30.
The court's decision will be effective on Dec. 21, and thereafter the Swedish processing oil manufacturer no longer will be limited by reorganization regulations, Nynas said in a statement.
"The situation that Nynas has found itself in due to the reorganization has placed tough demands on all parties involved, and intolerable pressure on our staff," Bo Askvik, Nynas president and CEO, said following the court decision.
Askvik said the company will "vigorously move forward" and is "ready to take back lost market share and more."
The Stockholm-based oil refiner filed for administration at Sodertorn District Court in December last year as banks had withdrawn credit facilities and it was unable to pay due debts.
The financial problems partially were linked to sanctions imposed by the U.S. Treasury Department's Office of Foreign Asset Control on Nynas's 50 percent shareholder PDVSA of Venezuela.
As part of the restructuring, the company reduced PDVSA's share ownership to 15 percent in May, which consequently led to the OFAC's lifting of sanctions on Nynas.
"This has meant that the company has been able to contract crude oil deliveries and to continue financing discussions under more favorable terms," the oil refiner said.
In addition, Nynas said it had to switch from Venezuelan crude as a major feedstock due to U.S. sanctions.
The company has approved and processed "several new feedstocks" following a change program at its refineries and supply chain.
"Nynas can now run our refineries with 100 percent non-Venezuelan feedstock without affecting the strict demands of our consistent product quality," it said.
With the new feedstock portfolio and the production upgrades, Nynas said it is now able to increase and optimize utilization at its refineries and increase volumes.
Furthermore, the Stockholm company said it had secured "good liquidity and cash flow" during the reorganization, due to a reduction in overdue customer payments, a granted deferral of tax payments and an agreement on inventory financing.
"Nynas comes out of the reorganization as a stronger company with five-year secured financing and a strong balance sheet," it said.