Monterrey, Mexico. September 12, 2017
Alpek, S.A.B. de C.V. (“Alpek”) announced today that several subsidiaries of M&G Chemicals, S.A. (“M&G”) passed due on a number of payments associated with the supply ofpurified terephthalic acid (PTA).
As of today, M&G’s consolidated past due balance with Alpek amounts to US$ 49 million, approximately 40% of its total balance.
Consequently, Alpek is halting its PTA supply to the PET plants operated by M&G in Altamira, Mexico and Suape, Brazil. Alpek may resume PTA supply upon payment of delinquent invoices or once alternative mechanisms are set forth to support M&G’s operations.
Alpek has engaged other creditors to assess the situation and determine the appropriate individual or joint course of action.
Regarding the start-up of the integrated PTA-PET plant that is being constructed by M&G in Corpus Christi, Texas and from which Alpek acquired supply rights for 500,000 tons per year of PET, Alpek anticipates difficulties for M&G to conclude the project. Alpek will heighten its continued assessment and monitoring of the project’s status and act accordingly.
So far, the information provided by M&G is limited and insufficient to determine its current situation and its potential impact to Alpek’s operations and results.
