Joint Venture to acquire bankrupt M&G USA PTA-PET plant in Texas
Corpus Christi Polymers LLC (“CC Polymers”) – a newly formed joint venture between Alpek, S.A.B. de C.V. (“Alpek”), Indorama Ventures Holdings LP (“Indorama”) a subsidiary of Indorama Ventures Public Company Limited, and Far Eastern Investment (Holding) Ltd. (“Far Eastern”) – has entered into an asset purchase agreement with M&G USA Corp. and its affiliated debtors (“M&G”). CC Polymers will acquire the integrated PTA-PET plant currently under construction in Corpus Christi, Texas, certain M&G intellectual property, and a desalination/boiler plant providing water and steam needs to the Corpus Christi Project. The purchase agreement provides M&G with a binding bid of $1.125 billion in cash and other capital contributions.
The Corpus Christi Project is an integrated PTA-PET plant currently under development that, when completed, will have nominal capacity of 1.1 million and 1.3 million metric tons per year of PET and PTA, respectively. The plant is expected to be the largest single line vertically integrated PTA-PET production facility in the world and the largest PTA plant in the Americas.
Pursuant to the terms of the newly formed joint venture:
The closing of the transaction is subject to conditions precedent including approval by the bankruptcy court and applicable governmental authorities.
PJT Partners is serving as financial advisor and Weil, Gotshal & Manges LLP is serving as legal advisor to Alpek. HSBC is serving as financial advisor and Lowenstein Sandler LLP is serving as legal advisor to Indorama. Morgan Stanley is serving as financial advisor and Duane Morris LLP is serving as legal advisor to Far Eastern.
