Grupa Azoty's Polyolefins files debt restructuring plan ahead of planned Orlen deal

Grupa Azoty SA

23/02/2026 07:24

Feb 23 (Reuters) - Polish chemical group Grupa Azoty's ATTP.WA GA Polyolefins unit has proposed a debt restructuring plan to its creditors via Poland's National Debt Register, a necessary step toward stabilizing its finances ahead of a planned acquisition by energy group Orlen PKN.WA, Azoty said on Saturday.

The plan is a part of an arrangement, launched late last year, that allows the unit to renegotiate debt repayments to avert bankruptcy, after installation failures at its flagship polymer project halted production.

KEY DETAILS

• The arrangement covered undisputed claims of around 6.1 billion zlotys ($1.7 billion) as of November 28. The new proposals cover selected liabilities of more than 6 billion zlotys.

• If adopted and approved by the restructuring court, creditors would recover about 17% of the claims covered by the arrangement, with the exact amounts depending on the creditor group.

• Orlen's propane loan to Polyolefins is excluded from cash recovery and will instead be converted to series H shares via a 101.7 million zloty capital increase.

• Orlen will provide 1.02 billion zlotys to finance the implementation of the arrangement, linked to its offer to buy the business, conditional on the restructuring.

• The arrangement covers around 1.98 billion zlotys in liabilities owed to Azoty group companies, including about 0.79 billion zlotys owed to the parent.

• Final terms may change as the proposals require creditor voting and court approval, Azoty said.

($1 = 3.5739 zlotys)

(Reporting by Rafal Nowak in Gdansk, editing by Milla Nissi)

((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))