Invista cuts debt by 63 percent

Invista CEO and Chairman Jeff Gentry said that the company has completed its refinancing and recapitalization effort that has reduced its debt by 63 percent, but would continue to look at further cost-cutting measures to deal with the current economic recession.

The company announced in a press release on Monday that it had cut $1.6 billion in debt as part of its strategy to best position the company for current and future business realities. The efforts, it said, had improved the company’s capital structure and put its current debt-to-total capital ratio at approximately 20 percent.

“Amid a global economic downturn that has companies around the world struggling to secure their futures, we have significantly reduced our debt and strengthened our financial position,” Gentry said.
Invista’s remaining debt is primarily unsecured bonds and an asset-based loan that provides credit terms free from many restrictions of other loan arrangements, the release said. Company shareholders and subsidiaries of Koch Industries invested in the recapitalization effort.

“Even with this refinancing effort concluded, we will continue to focus on reducing spending and restructuring our asset base to match current economic realities,” Gentry said. “Executing these strategies is necessary to meet today’s challenges and allow us to pursue opportunities that will undoubtedly present themselves coming out of this down cycle.”

Invista’s Waynesboro plant has let go 210 company workers and an undisclosed number of contract workers in its most recent layoff. Late last year, the company laid off 132 contractors from The Mundy Companies of Houston.

Last week, Invista announced that it would close a PET (poly-ethylene terephthalate) packaging resins plant in Offenbach, Germany by March, with 280 people losing their jobs as a result, according to ICIS, a chemical indus-try news publication. Part of the plant’s production capacity is to be transferred to the company’s location in Gersthofen, Germany.

Last month, the company announced it would close a nylon facility in Wilton, United Kingdom, putting 300 people out of work. Other recent company layoffs:

* In December, Invista announced that it would lay off 50 people at its Athens, Ga., facility.
* In November, an Invista contractor serving its Victoria, Texas, facility announced the layoffs of 60 people.
* At Invista’s Millhaven plant in Kingston, Ontario, the company announced it would lay off about 100 workers and idle production.
* In October, the company announced it would lay off 400 of 500 workers at its plant in Seaford, Del., a town of about 6,000 people.
* Last month, Koch Industries announced layoffs of 150 people at its Wichita, Kan. Headquarters, according to the Wichita Business Journal.
“With our refinancing complete and our restructuring activities well underway, Invista has the opportunity to operate as a leaner company with a stronger balance sheet,” Gentry said. “This enables us to continue to innovate and serve customers competitively with value-added products.”