UK soda ash manufacturer Brunner Mond, which employs 500 people, completed a major refinancing deal in August this year, freeing it from a massive debt millstone. The Northwich-based company has been …
UK soda ash manufacturer Brunner Mond, which employs 500 people, completed a major refinancing deal in August this year, freeing it from a massive debt millstone. The Northwich-based company has been granted a lifeline by lenders after it was unable to meet interest payments to them. The lenders – including Aberdeen Asset Management, Chase Manhattan International and Barclays Bank – have agreed to convert loans into equity, meaning they now effectively own the business. The issue of the high-yield loan notes included GBP 50 million and US$ 125 million. The refinancing represents the conversion of 93% of the UK issue and 70% of the US dollars debt to equity. As a result, Brunner Mond“s balance sheet now shows it owing GBP 42 million against GBP 180 million before restructuring.