JBF
Restructure with investor KKR to reduce debt / New PTA plant to yield substantial EBITDA
Indian polyester company JBF Industries (Mumbai, Maharashtra; www.jbfindia.com) has entered into an arrangement with existing financial investor KKR (New York / USA; www.kkr.com) to restructure the equity holding and management structure of JBF Global (Singapore), a subsidiary of JBF Industries.
JBF, which has been struggling financially for some time – see Plasteurope.com of 01.11.2017 – said the measures are aimed at aggressively deleveraging its balance sheet. The restructuring process is expected to be completed by August 2018.
Until now, the Singapore subsidiary held 100% of JBF Petrochemicals and JBF RAK (Ras al Khaimah / United Arab Emirates; www.jbfrak.com). This will change under a new arrangement that will see KKR hold 51% in JBF Global, with JBF Industries holding 49%. KKR will also arrange funding to finish building a new PTA plant in India, which is expected to be completed in four to five months time.
JBF said the restructuring will reduce around USD 500m (EUR 423m) of JBF Industries’ consolidated debt, while allowing it to retain a stake in the PTA business, which is expected to produce a “sizeable” EBITDA in the first full year of operations.
The deal remains subject to approval by lenders to JBF Petrochemicals. In addition, JBF Industries has started discussions with its consortium of lenders to restructure its debt which amounts to about INR 26 bn (USD 382m).
JBF, which has been struggling financially for some time – see Plasteurope.com of 01.11.2017 – said the measures are aimed at aggressively deleveraging its balance sheet. The restructuring process is expected to be completed by August 2018.
Until now, the Singapore subsidiary held 100% of JBF Petrochemicals and JBF RAK (Ras al Khaimah / United Arab Emirates; www.jbfrak.com). This will change under a new arrangement that will see KKR hold 51% in JBF Global, with JBF Industries holding 49%. KKR will also arrange funding to finish building a new PTA plant in India, which is expected to be completed in four to five months time.
JBF said the restructuring will reduce around USD 500m (EUR 423m) of JBF Industries’ consolidated debt, while allowing it to retain a stake in the PTA business, which is expected to produce a “sizeable” EBITDA in the first full year of operations.
The deal remains subject to approval by lenders to JBF Petrochemicals. In addition, JBF Industries has started discussions with its consortium of lenders to restructure its debt which amounts to about INR 26 bn (USD 382m).
23.05.2018 Plasteurope.com [239768-0]
Published on 23.05.2018
German version of this article...