Nynas AB cleared a significant hurdle in its reorganization efforts last week after the United States Office of Foreign Asset Control confirmed that a proposed change in the company’s ownership structure would exempt it from sanctions that it says have undermined its profitability. Nynas also said it will file to extend its reorganization now that its initial three-month reorganization period ended.
Nynas, one of the world’s largest suppliers of naphthenic base stocks, filed for reorganization in Swedish court on Dec. 13. The company, a joint venture between Venezuelan national oil company Petroleos de Venezuela S.A. and Finnish refiner Neste, said United States sanctions against PdVSA also cover entities controlled at least 50 percent by PdVSA. The Venezuelan company owns 50.001 percent of Nynas.