INVISTA lessens debt by more than 63%

12-Feb-09

Leading integrated manufacturer polymers and fibers, INVISTA B.V. recently announced that the company along with its subsidiaries has curtailed its total debt by US$1.6 bln (more than 63%) as part of a move to position the company for the current and future business environment. INVISTA, a subsidiary of privately owned Koch Industries, Inc., said in a release that it has completed a refinancing and recapitalization effort which has substantially reduced the company's debt, improved its capital structure, and resulted in a solid 20% debt-to-total-capital ratio. Of late, the company announced to reduce job positions and closures, both permanent and provisional. The plants affected by the announcements included its Athens-based site in Georgia, Waynesboro facility in Virginia, Seaford facility in Delaware and Wilton-based site in England. Most recently, INVISTA announced to stall operations at Offenbach-based polyester manufacturing facility in Germany. "Amid a global economic downturn that has companies around the world struggling to secure their futures, we have significantly reduced our debt and strengthened our financial position," said Jeff Gentry, INVISTA chairman and chief executive officer. INVISTA's remaining debt primarily consists of unsecured bonds and an asset-based loan which provides for credit terms that are free from many of the restrictions of other loan arrangements. The recapitalization effort included additional investment by INVISTA's shareholders, certain subsidiaries of Koch Industries, Inc. Further, the company has announced to keep 'focus on reducing spending and restructuring our asset base to match current market realities'. INVISTA operates in more than 20 countries across North America, South America, Europe, and the Asia-Pacific region.