Sibur to Buy $600M of Amtel-Vredestein Debt

On January 22 Amtel-Vredestein N.V. reported its postponement of the general meeting of shareholders planned for the second half of the month. This decision was taken, the company discloses, because it is not yet “in a position to submit a decision on the disposal of its subsidiary Vredestein Banden B.V. to the general meeting for approval”. Amtel-Vredestein says plans regarding the subsidiary’s disposal are continuing, however it admits the sale process “may be impacted by certain legal actions taken by creditors of the company”. In a press statement, the company says it intends to conclude the sale process as soon as possible, thereby offering maximum value to all stakeholders. This is, admittedly, a best-case scenario; the statement contains the caveat that there can be no certainty of the successful sale of Vredestein Banden B.V.

This news comes as the Russian business daily Vedomosti discloses plans from Russia’s Sibur to buy up Amtel-Vredestein debts worth US$600 million. By the end of January Sibur plans to issue bonds convertible into its shares, Vedomosti reports, quoting the company’s deputy director Igor Karavayev. Creditors of Amtel’s Russian divisions will be able to swap most of Amtel debt for the bonds, while the rest can be paid back with bonds that Sibur Holding issued this spring. Karavayev said that an agreement has been reached with most creditor banks, the paper adds.

Amtel-Vredestein borrowed heavily in recent years to fund acquisitions, and accumulated debts totalling $800 million. According to Vedomosti, $200 million of this is for the Dutch side of the business and is of no interest to Sibur.