Shearman & Sterling has advised the senior agent and senior lenders represented by a senior steering committee made up of Royal Bank of Scotland, GE Commercial Finance, Erste Group Bank, Raiffeisen Bank, K&H and led by the coordinator, Unicredit Bank AG, on the financial restructuring of European chemicals producer BorsodChem. The company's financial restructuring took effect on June 29.

The complex financial restructuring includes strategic investor Wanhua Industrial Group contributing €140 million for the building of a new production plant. BorsodChem produces polyurethane raw materials and vinyls (PVC resins and compounds, caustic soda) and during 2008 and 2009 its sales and profits declined significantly. However, with the new financial structure, the company will be able to restart its investment program.

The Shearman & Sterling team of lawyers in the firm's London, Frankfurt and Munich offices was led by finance and restructuring partners Anthony Ward and Clifford Atkins. They were assisted by counsel Colin Tan and associates Jeremy Philpott and Sebastian Cohnen. Structured finance and derivative advice was provided by partner Patrick Clancy and associate Leona McManus. The team also included partners Jo Rickard, Lois Moore, Laurence Levy and Iain Goalen and associates Rebecca Hilton and Sean Skiffington. Tax advice was provided by counsel Simon Letherman. Associate James Webber advised on competition aspects of the restructuring.