Nynas AB, one of the world’s largest suppliers of naphthenic base stocks, filed for reorganization protection in a Swedish court Friday after banks refused to extend its loans.
Officials said in a press release that Nynas and its shareholders have a plan to return the company to profitability but that it needs relief from loan payments that are due and which it is unable to pay.
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Nynas is a joint venture between Venezuela’s national oil company,Petroleos de Venezuela S.A. and Finnish refiner Neste. Nynas and Neste both blamed its predicament on economic sanctions that the United States imposed against PdVSA in 2017. In separate press releases the companies said the sanctions have eroded Nynas profitability over time. Nynas also said it had been stopped from buying Venezuelan crude oil and been forced to turn to more expensive alternatives.