Monday, 12 October 2009

BorsodChem lenders support independence

Hungary's PVC producer, BorsodChem, insists that its lenders want private equity owners Permira and Vienna Capital Partners to keep a majority stake in the company.

China's Wanhua Industrial Group has been building a stake in the group by purchasing large amounts of mezzanine or junior debt. A familiar battle for BorsodChem may be brewing (see earlier entries).

According to Reuters, "BorsodChem said that chemicals firm Wanhua may become a minority equity holder but any cooperation should be discussed only later and must be based on contractual agreements typical in the industry.

"In a meeting with senior lenders ... the Senior Steering Committee of the senior syndicate expressed its strong support of the current management of BorsodChem and its expectations that the current management continues to operate BorsodChem after the implementation of the debt restructuring plan," the firm said.

"Permira Funds and Vienna Capital Partners should remain majority shareholders, as was made clear by the banks," BorsodChem said.

View BorsodChem in Hungary in a larger map

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