Nynas AB announced yesterday that its reorganization is formally expected to be completed in January after resolving an appeal filed last week by the Swedish Tax Agency.
The District Court of Sodertorn, Sweden, ruled on Nov. 30 that the reorganization was complete following a meeting where creditors accepted the company’s proposal for restructuring debt. The company said it would exit the court-protected reorganization with much less debt, new owners and the ability to process feedstock other than the Venezuelan crude that exposed it to United States sanctions.
The district court’s decision was originally scheduled to take effect Dec. 21, and thereafter Nynas would no longer be limited by the reorganization regulations.
However, the Swedish Tax Agency appealed the court’s decision on Dec. 21 on grounds that Nynas owed it money. “The liability to the tax authority has since then been paid, with the effect that it has no remaining right to object to the formal public composition becoming effective,” Nynas stated in a news release issued yesterday. “The tax authority has subsequently withdrawn its objection and the Court of Appeal has today dismissed the case on the basis of the withdrawal.” The company explained that the tax authority’s objection delayed the formal public composition becoming effective until Jan. 18, 2021.
Nynas said that no other party raised any objections to the composition plan and that the objection period has ended.
Nynas’ ownership has been largely reshaped since it filed for reorganization in December of 2019. Petroleos de Venezuela S.A., which then owned just over half of the Stockholm, Sweden-based joint venture, now owns just over 15%. United Arab Emirates bitumen producer Bitumina bought out the stake of Finnish refiner Neste, which owned just less than half the partnership, and a Swedish foundation bought a 35% stake from PdVSA.
“Nynas comes out of the reorganization as a stronger company with five-year secured financing and a strong balance sheet,” Nynas President & CEO Bo Askvik said in yesterday’s news release. “Together with our loyal customers and suppliers, we will vigorously move forward and continue to develop our business in all our global markets.”