Hungarian chemicals company BorsodChem continues to see China's Yantai Wanhua Polyurethanes, which bought a significant part of BorsodChem's mezzanine loans with the involvement of investment banks, as a source of uncertainty because it is blocking any restructuring of BorsodChem's debt, BorsodChem Chairman-CEO Wolfgang Buchele told MTI.
“It is high time that [Yantai Wanhua] publically announce its intentions and show its commitments to the other parties on the matter of an approved restructuring of [BorsodChem's] debt,” Buchele said.
Wanhua has purchased about 75% of BorsodChem's mezzanine loans, MTI learnt. Buchele earlier termed Yantai Wanhua's purchase of the debt “hostile.”
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 has reached an agreement with its lending banks and could sign a contract on the restructuring of its debt on October 6, if uncertainty about Yantai Wanhua does not drag the matter out, Buchele said. The Chinese company, which bought BorsodChem's mezzanine loans as it struggled to cope with the crisis, has still not made clear its long-term intentions in the investment partnership, he added.
A cooperation with the Yantai Wanhua would have few advantages for BorsodChem, which already has its own technology as well as very good sales channels in Europe, Africa and the Middle East, Buchele said. Cooperation with Yantai Wanhua would at most allow BrosodChem to sell some products in Asia, he added.
Yantai Wanhua, on the other hand, stands to benefit from BorsodChem's excellent market position, and it could use BorsodChem's sales channels to sell its own products, Buchele said. Yantai Wanhua would also gain access to BorsodChem's TDI technology, he added. (MTI – Econews)