Nynas closes reorganization, pays debt in full

STOCKHOLM—Nynas A.B. has settled the payment "in full" to trade creditors who had claims remaining, effectively "closing its reorganization," which started in December 2019.

"We are grateful for the cooperation, patience and loyalty that our customers and suppliers have shown following a difficult time in the company's history," Nynas President and CEO Bo Askvik said in a Jan. 19 statement.

"Today we are pleased to announce that the payment of the remaining outstanding amounts has taken place," he added.

Nynas filed for administration at Soderton's District Court in 2019 as banks had withdrawn credit facilities and it was unable to pay due debts.

The financial problems were linked to sanctions imposed by the U.S. Department of Treasury's Office of Foreign Asset Control (OFAC) on Nynas's 50-percent shareholder PDVSA of Venezuela.

The Swedish refiner completed the year-long reorganization process following the approval of a composition proposal by creditors in December 2020.

As part of the composition agreement, the banks and the largest raw material supplier jointly declared they agreed to have their claims converted into long-term senior loans with a maturity of five years, Nynas said.

"In the reorganization process, we … came out as a stronger company with five-year secured financing and a strengthened balance sheet," Askvik said.

"We will in 2022 keep our focus on continuing to strengthen Nynas to the benefit of all our stakeholders," he added.