Unigel Participacoes, the troubled Brazilian chemical and fertilizer maker, has signed an agreement to sell 100% of Plastiglas, its Mexico-based acrylic sheet manufacturer, to the Verzatec Group, according to Bloomberg, citing a Unigel statement. Verzatec, also Mexico-based, produces fiberglass reinforced plastic laminates and related products.
The sale is in line with Unigel’s plan to readjust its capital structure. Sale proceeds are to be used to strengthen the company’s cash position. Unigel did not specify the economics of the transaction, citing confidentiality clauses. The closing of the transaction depends on regulatory approvals.
Unigel has hired an additional legal adviser as it continues to negotiate with creditors, according to people familiar with the matter. It has engaged Brazilian law firm Padis Mattar Advogados to help in debt restructuring talks, said contacts who asked not to be identified because the discussions are private. Unigel had already been working with Felsberg Advogados on the talks.
Unigel declined to comment, while Padis Mattar didn’t immediately reply to an emailed request seeking comment.
Unigel, which has struggled amid high interest rates and falling prices for its products, was cut to default by ratings firms in early November after failing to pay a coupon on its dollar bonds (GM Nov. 10, p. 30). The firm also negotiated a standstill with holders of its local notes.