(Adds source on insolvency, quote)
MADRID, June 25 Spanish plastics bottle maker La
Seda de Barcelona will ask shareholders to approve its
debt refinancing plan and allow it to withdraw from insolvency
proceedings on Wednesday, a person close to the company with
knowledge of the plan told Reuters.
La Seda said in a stock market notice on Tuesday that it had
reached a preliminary deal to refinance 75 percent of its
syndicated debt with creditors, after saying last week it would
file for insolvency.
The company should now be able to restructure 235 million
euros ($307 million) of syndicated debt following the agreement,
with over half its creditors signing up to refinance 75.4
percent of the debt.
"That means all the legally required thresholds to implement
the company's syndicated debt refinancing proposal have been
reached," La Seda de Barcelona said in a statement.
"If the process to withdraw from insolvency proceedings is
approved tomorrow, (biggest creditor) Anchorage's plan to
convert the debt into capital will go ahead, but that has to be
decided at tomorrow's meeting," the person said.
The Catalonia-based company, which makes bottles in Europe,
Turkey and North Africa, has been in talks with creditors since
last September after high material costs and excess supply of
the PET plastic containers it makes put pressure on the
The firm, whose biggest creditor is U.S. hedge fund
Anchorage, said last week it would start insolvency proceedings
after failing to get the 75 percent of creditors it needed on
board with its refinancing plan.
La Seda had 600 million euros of debt at the end of 2012,
according to company filings, and has 462 million euros in
syndicated loans from banks, according to Reuters loan market
news and analysis service RLPC.
A source close to the talks had said last week that 235
million euros of that syndicated debt needed to be restructured.
(Reporting by Andres Gonzalez and Clare Kane; Editing by Greg
Mahlich and Dan Grebler)