Grupa Azoty Polyolefins, a subsidiary of Grupa Azoty, has launched formal restructuring proceedings under a Restructuring Approval Procedure (PZU).

 

The move comes after the company lost the ability to service its current liabilities and follows an internal review of corrective measures aimed at keeping operations afloat.

 

The PZU is designed to reach an arrangement with creditors, stabilising the company’s finances while protecting employees, business partners, shareholders, and creditors.

 

A formal debt restructuring is also tied to a potential acquisition by Orlen. The energy giant submitted a non-binding offer on 15 October to acquire all shares in Polyolefins, with restructuring being one of the conditions.

 

“The objective of the proceedings is to organise the company’s project-related debt and reach an agreement with creditors so that the company can function in a stable manner, and the continuation of the Polimery Police project becomes realistically possible," said Andrzej Skolmowski, President of the Management Board of Grupa Azoty.

 

"At the same time, a formal debt restructuring is one of the conditions included in Orlen’s non-binding offer of 15 October to acquire 100% of Polyolefins shares. Coordinating discussions with the company’s creditors and the course of proceedings will allow us to take a decision on the Orlen offer, which we will communicate to the market in the appropriate report."

 

The Polimery Police project has faced repeated installation failures, halting production and cutting off the company’s primary revenue stream. Completing repairs and commissioning the project requires financing that Polyolefins cannot currently secure.

 

Meanwhile, the Management Board has filed a petition with the court to declare bankruptcy, while requesting the court suspend proceedings until the arrangement process is filed or otherwise discontinued.

 

“Our focus is on restructuring measures that will allow GA Polyolefins to continue its operations. The submission of a bankruptcy petition is a formal requirement and does not imply actual bankruptcy,” Skolmowski added.