Latest court filing brings more scrutiny to future of M&G plant in Corpus Christi – Mossi Ghisolfi Corpus Christi - Arhive

Terry Tyzack, a spokesman for M&G, said the filing was made by the Italian companies of Mossi Ghisolfi Group and “has therefore no direct effect on any international M&G sub-companies (and their affiliates), which have not filed themselves”. He reiterated the company’s prior stance that “no decision has been made to permanently shutdown operations or construction at this time,” when asked about the Corpus Christi plant’s future.

More questions have been raised about the future of M&G Resins processing plant in Corpus Christi after the Italian plastics company’s latest court filing overseas.

The global company, which owes millions to creditors, is seeking a court settlement to restructure debt in a last ditch bid to stave off bankruptcy, according to a report from ICIS, which tracks the petrochemical industry and related markets.

The filing, referred to in Italy as “concordato preventivo,” was made by the Mossi Ghisolfi Group and will affect several of its related companies. The company issued a statement on its website on Oct. 10 announcing the filing.

MORE: What is “concordato preventivo”? 

The news of the company’s growing financial issues comes on the heels of earlier announcements that it would stop producing at its West Virginia plant.

A round of layoffs at the $1 billion Corpus Christi plant also was announced earlier this month.

The local M&G Resins USA plant, which sits along the Joe Fulton International Corridor, was supposed to be on a timeline to open by end of this year. It’s unclear if and when that will happen. Work began in late 2014.

The 412-acre facility would be the world’s largest single-line producer of two kinds of resin that are used to make plastics.

Earlier this month Mauro Fenoglio, the global manufacturing director for M&G Chemicals, acknowledged the company is “facing financial difficulties,” but said it would work closely with its lenders to address the situation.

International petrochemical Alpek announced earlier this year that it had suspended shipments of purified terephthalic acid to M&G due to nearly $50 million in unpaid invoices for its Brazil and Mexico operations. The acidis the main raw material for polyethylene terephthalate and polyester fibers. Polyethylene terephthalate is used to make food and beverage containers, while polyester fibers are used to make clothing or fabric for furniture.

Alpek’s CEO, Joe de Jesus Valdez, on Monday issued an earnings report in which he said Alpek was working with M&G to resume shipments, adding that “a suitable mechanism may be implemented soon”. Alpek has taken a financial hit due to M&G’s troubles, though, he said.

M&G Resins USA has maintained its plant along the Joe Fulton International Trade Corridor remains on pace to open by the end of the year.

Chris Ramirez contributed to this report.