Onico has not reached an arrangement with creditors

The arrangement proposals of oil company Onico were narrowly missed. The company is awaiting a decision on sanction redemption.

Onico, a fuel trading company, lost liquidity in 2019. Two years ago, sanitation proceedings were opened against it.  Recently, the creditors’ meeting voted to approve the arrangement proposals. It fell just short of the required majority of 66.6 percent. The arrangement was rejected.

Onico’s debt amounts to PLN 220 million. The company proposed to give creditors 30 percent of this amount. Among those who voted in favor of the arrangement were: ING bank, the Government Strategic Reserve Agency, PKP Cargo and the First Mazovian Tax Office. In contrast, Alior bank, which is one of the larger creditors, was against it. It justified its position by the need to adjourn the meeting in order to obtain documentation that would facilitate its decision. The judge did not agree.

The company is currently awaiting a decision from the court. It is expected to decide whether to cancel the sanitation. Onico’s CEO is considering filing a complaint. If the court discontinues the sanitation, the company may file for either arrangement or liquidation bankruptcy. However, Onico’s CEO assures that the latter option is less likely, as the company made a sizable profit in the first half of the year. It has not yet published its results for this year. But in the fourth quarter of 2021 it had an operating profit of more than PLN 8 million.

Onico plays an important role in the domestic liquid gas market. Alpetrol is its subsidiary, which operates the LPG terminal at the Port of Gdynia. It is involved in the handling of LPG.

Source: https://www.pb.pl/dlugi-przygniotly-terminal-lpg-1164677