en.Wedoany.com Reported - French PVC and vinyl chloride producer Kem One has reached a debt restructuring agreement with its main financial partners, reducing approximately 80% of its debt and providing the company with a financial buffer amid market pressures in the European chemical industry.
The Lyon-based manufacturer announced it has reached an agreement in principle with its main financial partners to reduce debt by $802 million (€720 million), while injecting $114 million (€100 million) in new liquidity. Upon completion of the restructuring, remaining debt will be reduced to $176 million (€154 million), including $154 million (€135 million) provided by new and existing shareholders. The debt maturity has been extended to 2031, with interest capitalized for the first two years and subsequently paid under a "Pay If You Can" mechanism based on the company's financial performance.
The transaction involves multiple financial measures. New reference shareholders Monarch Alternative Capital and Arini jointly provide $34 million (€30 million), Apollo-managed funds, which have been shareholders since 2022, inject $45 million (€40 million), and an additional €30 million revolving credit facility constitutes the new liquidity package.
Ownership is also changing, with Monarch Alternative Capital and Arini (the latter as a minority non-controlling investor) becoming reference shareholders, while Apollo-managed funds continue to participate through the new financing round. CEO Vincent Linchet will continue to lead the company and its executive management, with the existing operating model remaining unchanged. The company's financing facilities with banking partners, including a consortium of Bpifrance and LCL/CERA, will also be retained. Governance will be adjusted through the establishment of a board of directors, composed of representatives from Monarch Alternative Capital, Arini, and Linchet, with the appointment of a chairman underway. The financial agreement has no employment impact.
Prior to the restructuring, the company had made significant capital investments. Since 2022, Kem One has invested over $630 million (€550 million) to modernize, improve performance, and enhance competitiveness across its eight production sites in France and Spain, enabling the company to modernize its upstream processes and consolidate European infrastructure.
CEO Vincent Linchet stated that the agreement enables the company to fully advance its strategic priorities, including diversifying its sales mix, maintaining investments in safety, environment, and asset reliability, strengthening operational excellence, and continuing its decarbonization process, allowing the company to move forward in a challenging environment. Linchet also noted the need to continuously address competitive pressures from outside Europe and called for continued action against unfair competition and dumping practices by some players. He also thanked Apollo-managed funds for their support as shareholders since 2022.
The transaction is expected to close in October 2026, subject to obtaining necessary regulatory and legal approvals and satisfying customary closing conditions. Kem One employs nearly 1,500 people and operates vinyl chloride and PVC businesses at facilities in France and Spain.
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