Ineos mulls asset sales, held debt talks with creditors over debt
TL;DR
Ineos is considering asset sales and debt restructuring to manage its €5.5 billion debt amid a chemical industry downturn, with recent funding secured and cost-cutting measures in place.
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Ineos mulls asset sales, held debt talks with creditors over debt
Ineos Considers Asset Sales and Debt Restructuring Amid Sector Challenges
INEOS, the multinational chemicals giant led by Sir Jim Ratcliffe, is exploring asset sales and engaging in discussions with creditors to address its debt burden amid a prolonged downturn in the global chemical industry. The company has secured €500 million in fresh funding—comprising €200 million in shareholder equity and €300 million in inventory-linked credit—to bolster liquidity ahead of a €360 million bond maturity in January 2027.
The European chemical sector has faced significant headwinds, including elevated energy costs, weak demand, and oversupply from Chinese competitors. INEOS reported a 50% decline in fourth-quarter 2025 EBITDA to €77 million, driven by facility turnarounds and sector-wide pressures. Net debt stood at €5.5 billion as of December 2025, with cash reserves at €1.69 billion.
The company has initiated cost-cutting measures, including operational restructuring and plant closures, to reduce fixed costs. For instance, Inovyn temporarily mothballed a chloromethanes facility in France and a PVC export plant in Spain, while permanently closing operations in Germany. The Aromatics division swung to a negative EBITDA of €8 million in Q3 2025, reflecting weak PTA market spreads and inventory losses.
INEOS bonds have fallen below 80% of face value, signaling distress. Refinancing options, including inventory monetization, are under consideration, though high yields on existing debt—such as 17% on April 2030 notes—pose challenges. A spokesperson emphasized the company's focus on long-term fundamentals, stating, "Access to capital has never been about sentiment in a single quarter... fundamentals are starting to move in the right direction".
Ratcliffe has urged the EU to address "dumping" by Chinese chemical exporters, warning of existential risks for European producers. Meanwhile, the company's broader restructuring includes layoffs at Ineos Automotive and a search for buyers for French football club OGC Nice.
With sector recovery uncertain and debt maturities looming, INEOS's ability to balance asset sales, cost discipline, and creditor negotiations will be critical to stabilizing its financial position.
