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Kazanorgsintez could decide on debt restructuring in a month

September 08/2009

MOSCOW  (Interfax) - Kazanorgsintez (RTS: KZOS) could decide
on debt  restructuring within a month, the Prime Minister of Tartarstan,
Rustam Minnikhanov,  said  at  a  press conference at Interfax"s central

"Constructive  work  is  today underway with our creditors. I think
that we will decide on debt restructuring in the coming month," he said.
Minnikhanov  added  that  the  company currently had a serious debt
burden coming to "around 20 billion-30 billion rubles."

He added: "today the enterprise was operating at plus 7%-8% against
last year."

He  also  said that the plastics market had been in decline in both
Russia and  overseas.  However,  the  market  is  now  showing  signs of
recovery, Minnikhanov said, adding, "all of this gives hope."

It  was  earlier  reported that TAIF Group (the main shareholder in
Kazanorgsintez)  had offered the company"s creditors a deferment on loan
payment  coming  to  eight years, which would include a rate increase to
14%. In  addition, changing the terms for supply of raw materials to the
enterprises  is  being  considered.  According  to  the  FAS,  SIBUR and
Kazanorgsintez  have  ruled out give-and-take deliveries of ethane. Both
parties are now discussing price formulas for ethane supply.

At  a  meeting  in July chaired by First Deputy Prime Minister Igor
Shuvalov,  the  allocation  of 15 billion rubles in state guarantees was

Kazanorgsintez  is  owned  by  Telecom-Management,  a  wholly owned
subsidiary of the TAIF group. State-owned Svyazinvestneftekhim has 28.4%
of shares.

Kazanorgsintez  is  a  leading Russian producer of polyethylene and
polyethylene pipe. It produces over 170 chemical products.


       MRC Reference

Leader in polymers processing technologies:
 film extrusion;
 pipe extrusion;
 injection molding.


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