Approval of a preliminary covenant waiver plan for the Ineos group (Lyndhurst / UK; www.ineos.com) is moving closer and is all but secured, according to press reports. A decision is expected this week. As of 24 May, around 60% of the estimated more than 200 lender banks are said to have given thumbs up to an extension of the waiver granted last December – see Plasteurope.com of 12.12.2008. A two-thirds majority is required. Lenders will have until 17 July to consider the five-year business plan presented with Q1 2009 results on 18 May and scheduled to be circulated to all note holders by mid-June.

The UK group is carrying debts of EUR 7.5 bn. However, “sources close to the situation” told the news agency Reuters that Ineos “will have no problems” meeting its obligations over the next year. Its euro bonds maturing in 2016 have recently rallied, closing on 20 May at 25% of face value after falling to just 7% on 20 April. Observers said this was due to increasing confidence on the part of investors that the ten-year old plastics and petrochemicals conglomerate will be able to convince lenders its finances are sufficiently sound.

In a conference call with analysts and investors, CFO John Reece said Ineos has cut costs “significantly” since the beginning of 2009 and that “an improving trend” in revenues has been registered. While hinting at “a lot of activity” to sell off some assets to repay loans, he gave no hints as to which business might be up for sale. Full-year revenue for 2009 is budgeted at EUR 15.2 bn and full-year replacement cost EBITDA at EUR 1.1 bn, the group said in its results statement.