STOCKHOLM, Sweden—Nynas A.B. has extended its timeline for a reorganization plan that was launched late last year after the company failed to secure loan extensions from its banks or pay on debts that came due.
A Swedish court approved a three-month extension, giving the Stockholm-based process oils manufacturer until Sept. 15 to wrap up its reorganization. Nynas had filed for administration at Soedertoern's District Court in December as banks had withdrawn credit facilities and it was unable to pay on its debts.
The financial problems were linked to sanctions imposed by the U.S. Treasury Department's Office of Foreign Asset Control on Nynas' 50-percent shareholder PDVSA of Venezuela.
As part of the restructuring plan, the company reduced PDVSA's share ownership to 15 percent in May, which consequently led to OFAC's lifting of sanctions on Nynas.
"Extensive work has been carried out throughout the reorganization, which resulted in decisive progress last month," Nynas said in a statement. The conditions, it added, are good for a long-term sustainable reorganization of Nynas.
Nynas believes it is possible to complete the reorganization in the coming three-month period.