Under the agreement, Alpek will begin recovering US $160 million in guaranteed debt, related to its first and second liens, as early as the end of this year. Based on the strong PET demand and margins seen in recent months, as well as the outlook for the global Polyester industry, the Company expects to recover the full amount of its guaranteed debt plus interest over the next five years.
Alpek will also continue supplying the PTA needed by M&G Mexico’s PET facility. This will both ensure stable operations at M&G Mexico as Alpek recovers its debt, as well as a steady offtake for our PTA site in Altamira.
“We are very pleased to see this process come to its successful completion under terms that are beneficial to all parties involved,” said José de Jesús Valdez, Alpek’s CEO. “Recovering our guaranteed debt will help Alpek continue pursuing value-generating opportunities while relying on a stronger free cash flow and financial position.”