Nynas applies for company reorganisation
Nynas AB has filed for company reorganisation at Södertörn's District Court.
Nynas AB has filed for company reorganisation at Södertörn’s District Court.
Nynas loans have not been extended by the banks. Thus, Nynas cannot pay due debts forcing the company to apply for a reorganisation of the company.
“Because the business is of great importance to our customers, and it is my absolute hope that the company can be reorganised under controlled forms so that we can continue to deliver our products. In the short term, we see no other opportunity than to request a reorganisation, in the long term, we see good conditions to continue the business. Nynas has a strong offering with good demand from the market,” says Bo Askvik, acting CEO of Nynas AB.
The US sanctions against Nynas 50 percent shareholder, Venezuelan PDVSA, have eroded Nynas profitability over time. Due to PDVSA’s ownership, Nynas has been affected by US financial restrictions since August 2017. Recently, the company has also been stopped from buying crude oil from Venezuela which has been replaced with other crude oils. This has resulted in increased raw material costs. As a result of the sanctions, the company had high financial prices and lost business because of the sanctions. Now, a situation has arisen where there is no longer a continuous financing of the company’s operations.
The banks that have been financing the business for a long period have chosen, in their current form, not to support the company’s change work. As a result, Nynas has no option but to request a company reorganisation.
Mikael Kubu, Ackordscentralen and Lars Eric Gustafsson, Hamilton Advokatbyrå, have been appointed as Administrators in Nynas AB (publ) by the district court.
Source: Nynas