Nynas AB announced a proposal Monday to restructure its debts to lenders and to repay other creditors, a major step toward completing the court-supervised reorganization that it filed for less than 11 months ago.
The proposal, which according to Nynas has the support of major creditors, would allow the company’s lenders to choose to immediately receive 25% of the money owed to them by Nynas or to receive 65% over a period of more than five years. Other creditors would be fully repaid – either immediately if they are owed less than 100,000 Swedish krona (U.S. $11,464) or within 12 months for those owed more than that amount.
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The proposed resolution, referred to as a composition proposal, still must be approved by creditors, who have a number of weeks to decide. Nynas said the proposal is endorsed by the court-appointed administrator of the company’s case, as well as investors that are standing by to support the company.