Hungarian chemicals company BorsodChem has asked for a moratorium on its debt repayments to be extended until the middle of January to allow it to reach a final agreement on a financial restructuring with all affected parties, CEO Wolfgang Buchele told MTI on Tuesday.
A final agreement on the financial restructuring should be reached by Christmas Buchele said.
The approval of state-owned Hungarian Development Bank (MFB) on the restructuring will be key to the entire process, Buchele said. The company will pay back a loan from MFB before any its other loans, he added.
BorsodChem has to reach an agreement with some 60 banks and other lenders on restructuring about €1 billion in debt. Part of the debt is mezzanine loans, linked to 19% of BorsodChem shares, purchased recently by China's Wanhua.
BorsodChem's operations improved significantly in Q3, especially its TDI and MDI production, Buchele said. (MTI-Econews)