STOCKHOLM—Swedish processing oil manufacturer Nynas A.B. has initiated a formal exit from a reorganization scheme it started a year ago to address financial problems.
The company, along with administrators, has distributed a "composition proposal" as well as an administrators' report to creditors, detailing a debt repayment process in the near future.
The proposal, distributed Oct. 26, offers all unsecured creditors a payment of $11,300—or the lower amount of their claim—which will be paid immediately when the composition is legally binding.
All creditors with claims remaining after receiving payment of $11,300 will receive full payment within 12 months after, Nynas said.
According to the company, the administrators fully support the composition proposal, and there is a "very high" likelihood for reaching a final agreement soon on the long-term ownership and financing of Nynas.
The Stockholm-based oil refiner filed for administration at Soedertoern's District Court in December as banks had withdrawn credit facilities and it was unable to pay due debts.
The financial problems were linked partially to sanctions imposed by the U.S. treasury department's office of foreign asset control (OFAC) on Nynas's 50 percent shareholder PDVSA of Venezuela.
According to Nynas, the reorganization has so far resulted in "decisive progress," including an equity contribution of $140 million from shareholders in March.
In addition, as part of the restructuring program, the company reduced PDVSA's share ownership to 15 percent in May, which consequently led to the OFAC's lifting of sanctions on Nynas.
In September, as an "important step" in the process, Finnish energy group Neste sold its 49.99 percent stake in Nynas to Bitumina Industries Ltd., thereby making the Dubai-based bitumen specialist the largest shareholder in the Swedish company.