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BorsodChem seeks to restructure debts, confirms Wanhua as suitor

Hungarian chemicals company BorsodChem said its creditors, among them the Hungarian development bank MFB, supported a proposal to restructure its debts.

BorsodChem's management believes the proposal can be carried out and that it will be approved by creditors at the beginning of October, the company said. BorsodChem has about 60 creditors.

Private equity company Permira took over about €200 million in mezzanine loans when it acquired BorsodChem in 2006. Most of the loans contain options to acquire stakes in BorsodChem.

BorsodChem also acknowledged a press release on September 9 in which China's Wanhua said it was interested in becoming a strategic investor in BorsodChem.

“BorsodChem confirms that Wanhua contacted its owners, but talks with the management have not taken place,” the company said. The management sees restructuring BorsodChem's debts as its most important task at present, it added.

Wanhua has purchased about 75% of BorsodChem's mezzanine loans, MTI learnt. (MTI – Econews)