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INEOS successfully completes debt covenants waiver process



INEOS Group Holdings plc (“INEOS” or “Group”) today confirms that the holders of its senior debt have voted overwhelmingly in favour of the Group’s amended debt covenants waiver request. Lenders have given their support in the company showing confidence in the management team and the underlying business. 

Barclays Bank PLC, as agent for the lenders, has confirmed over 90% of the syndicate by amount voted and 100% of these voted in favour.

John Reece, CFO INEOS said today:

“We are pleased that senior debt-holders have endorsed our pro-active steps to address the exceptional trading conditions. The result highlights the long-term support that exists for the company and its management team. 

Whilst our focus now is on trading through the near-term market conditions expected in Q1, we remain well positioned in the long-term due to our portfolio of businesses all of which are capable of trading through normal bottom-of-the-cycle conditions.

INEOS is now in the process of drawing up a new 5 year business plan which it will present to stakeholders after the end of Q1 2009.”

Lazard & Co., Limited is acting as financial advisor to INEOS. 

Further reading:

INEOS October results 2008 and covenant waiver request: 


INEOS is one of the world’s biggest chemical companies with 70 manufacturing sites and 16,000 employees. This growth has been achieved by INEOS acquiring non-core assets from other major chemical companies including Dow, Dupont, ICI, BP and BASF. INEOS invests in these facilities, significantly reduces the cost base and turns them into some of the world’s best high quality / low cost production plants. Since 2002, INEOS has created $12.2 billion of shareholder value. INEOS senior management is considered as one of the most experienced in the chemicals industry.

For further information contact:

Richard Longden +44 (0) 2380 287037 

Financial Dynamics 
Edward Bridges +44 (0) 207 831 3113
Giles Sanderson

Michael Grayer +44 (0) 20 7187 2000.

Forward looking statements

This announcement includes “forward-looking statements”, within the meaning of the U.S. securities laws, based on INEOS Group Holdings plc’s (“IGH”) current expectations and projections about future events. All statements other than reported financial results and statements of historical facts included in this announcement may be deemed to be forward-looking statements, including, but not limited to, estimates of IGH’s EBITDA for 2008 and expected future cost savings. Words such as “believe”, “expect”, “anticipate”, “may”, “intend”, “will”, “should”, “estimate” and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, including: IGH’s high degree of leverage and significant debt service obligations, as well as future cash flow, profitability and liquidity; a continuation of, or further negative developments in, adverse financial market conditions that may affect IGH’s ability to incur or refinance indebtedness and the terms of its existing and future indebtedness; changes in raw material costs and supply arrangements, including rapid fluctuations in the costs of feedstocks; the cyclical and highly competitive nature of IGH’s businesses; adverse developments in global economic conditions; currency fluctuations; disruptions in production at IGH’s facilities, including due to plant and equipment failures, labor stoppages and adverse weather conditions and natural disasters; IGH’s ability to realize synergies and cost savings; and, current or future environmental requirements and the related costs of maintaining compliance and/or addressing liabilities. Reference should be made to IGH’s 2007 annual report, including the section therein titled “Risk Factors”, for a description of certain of these risks and uncertainties. In addition, from time to time IGH or IGH’s representatives, acting in respect of information provided by IGH, have made or may make forward-looking statements orally or in writing and these forward-looking statements may be included in but are not limited to press releases, filings with the regulatory authorities, reports to IGH’s security holders and other communications. Although IGH believes that the expectations reflected in such forward-looking statements are reasonable, IGH can give no assurance that such expectations will prove to be correct. IGH does not undertake any obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

Lazard & Co., Limited is acting for Ineos Group Holdings Plc, Ineos Holdings Limited and Ineos US Intermediate Finance LLC and no one else in connection with the matters referred to in this announcement and will not be responsible to any person other than INEOS Group Holdings Plc, INEOS Holdings Limited and INEOS US

Intermediate Finance LLC for providing the protections afforded to clients of Lazard & Co., Limited or for providing advice in relation to the matters referred to in this announcement.

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