ALPEK B de C : announces M&G Mexico's restructuring plan has been approved
September 07, 2020 at 08:45 am EDT
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Alpek, S.A.B. de C.V. ('Alpek') announced today that the financial restructuring agreement between M&G Polimeros Mexico, S.A. de C.V. ('M&G Mexico') and the majority of its creditors, including certain Alpek subsidiaries, has been approved on a definitive basis by the Mexican bankruptcy court.
This approval would conclude the pre-agreed bankruptcy proceedings ('concurso mercantil preacordado') initiated by M&G Mexico and its creditors in February 2019. Under the agreement, Alpek will begin recovering US $160 million in guaranteed debt, related to its first and second liens, as early as the end of this year. Based on the strong PET demand and margins seen in recent months, as well as the outlook for the global Polyester industry, the Company expects to recover the full amount of its guaranteed debt plus interest over the next five years. Alpek will also continue supplying the PTA needed by M&G Mexico's PET facility. This will both ensure stable operations at M&G Mexico as Alpek recovers its debt, as well as a steady offtake for our PTA site in Altamira. 'We are very pleased to see this process come to its successful completion under terms that are beneficial to all parties involved,' said Jose de Jesus Valdez, Alpek's CEO. 'Recovering our guaranteed debt will help Alpek continue pursuing value-generating opportunities while relying on a stronger free cash flow and financial position.'
Alpek SAB de CV is a Mexico-based company engaged in the chemicals sector. The Company's activities are divided into two business segments: Polyester and Plastics & Chemicals. The Polyester division focuses on the manufacture and distribution of purified terephthalic acid (PTA), polyethylene terephthalate (PET) and polyester fiber. The Plastics & Chemicals division is responsible for the production of polypropylene (PP), expandable polystyrene (EPS), caprolactam (CPL), ammonium sulfate, as well as specialty and industrial chemicals, such as surfactants, ethoxilates, glycoethers and desemulsionates. The Company's products are used in a range of industries, including consumer goods, food and beverages, automotive, construction, agriculture, oil and gas, as well as pharmaceuticals. It operates a number of production plants in the Americas. The Company is controlled by Alfa SAB de CV.
ALPEK, S.A.B. DE C.V. 
