Nynas inches closer to formal exit from reorganisation

Nynas AB and its administrators have submitted a proposal to Nynas creditors to initiate its formal exit from reorganisation.

The proposal is a result of ongoing negotiations between Nynas’ major creditors. The proposal contains two alternatives with regards to their concessions. 

The formal composition proposal distributed by Nynas yesterday offers all unsecured creditors the following composition: 

• All creditors will receive payment of SEK100,000 (USD11,440) or the lower amount of their claim, including accrued interest, to be paid immediately after the composition has become legally binding.
• All creditors with claims remaining after receiving the payment of SEK100,000 (USD11,440) will receive full payment within 12 months after the composition has become legally binding.  Creditors under this section will participate in voting on the composition, due to the creditor’s concessions in the form of postponed payment and forgiveness of interest.
• The composition is conditioned upon that the lenders and GPB jointly declare to accept either a composition of 25% on their remaining claims in excess of SEK26.5 million (USD3 million), to be paid within 12 months of the composition becoming legally binding.  Alternatively, accept a higher composition of up to 65%, but with a significantly longer credit period meaning that 36% is converted into long-term senior loans with a maturity of five years at the earliest after the composition has become legally binding and 29% converted into subordinated hybrid instruments. 

All details were stated in the composition proposal submitted to creditors by mail.

The administrators fully support Nynas composition proposal which is also stated in their report. The administrators have been instrumental in the negotiations and shares Nynas’ view that all potential investors, either independently or through the backing from financial institutions, are financially strong and reputable with a serious interest in investing in Nynas’ business. Provided that the composition proposal is approved, as can be expected given the support by the administrators and the major creditors, the likelihood of reaching a final agreement within a short period regarding long-term ownership and financing of Nynas is deemed very high.   

Important progress made

Nynas’ financial difficulties that led to the company’s reorganisation originates from the U.S. trade sanctions against PdVSA and Venezuela, which then also included Nynas. Extensive work has been carried out throughout the reorganisation period, which has resulted in decisive progress. 

Since May this year, Nynas is no longer blocked by U.S. sanctions regulations and the company has been able to contract crude oil deliveries and negotiate financing under more favourable terms. The company has managed to secure good liquidity and cash flow through a significant reduction of overdue customer payments, a granted deferral of tax payments and an agreement on inventory financing.

The administrators of Nynas AB during the company reorganisation are Mikael Kubu, Ackordscentralen Stockholm AB and Lars Eric Gustafsson, Advokatfirman Schjødt.

Updates on the Nynas AB company reorganisation are posted on www.nynas.com/en/media/nynas-reorganisation.

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