Budapest, Hungary - BorsodChem's management and majority shareholders have signed "an agreement in principle" with China-based Wanhua Industrial, which controls Yantai Wanhua , a minority shareholder of BorsodChem.
The agreement defines the mid-term role of Yantai Wanhua as a minority shareholder in BorsodChem, as well as the agreement to the company's debt restructuring programme, which is supported by senior lenders to BorsdoChem and the Hungarian government, a 15 Oct company statement said.
"This is a very important step for the financial restructuring of BorsodChem and the implementation of our growth plan," said Wolfgang Büchele, ceo of BorsodChem.
However, Büchele also said there is still a long way to go with "several questions" remaining unresolved that need to be addressed at a later stage. "The delegates agreed on further negotiations in due course to discuss the open questions in a friendly and constructive manner," he added.
In a recent meeting with senior lenders of BorsodChem, the banks expressed their strong support of the company's current management and their expectations that it continues to operate BorsodChem during the implementation of the debt restructuring programme. Permira Funds and Vienna Capital Partners should remain majority shareholders and continue to exercise operational control, the banks stated.
Büchele previously told Hungarian national news agency MTI-Eco that Yantai Wanhua Polyurethanes, which has purchased most of BorsodChem's mezzanine loans, was creating uncertainty at the company by not revealing its intention for the Hungarian isocyanate producer.(RD)