Britain’s biggest private company, struggling with £6.1bn debt, has sought the help of restructuring specialists to tide over the crisis. Chemical manufacturer Ineos’s chairman, also the 25th richest person of the UK, Jim Ratcliffe, has asked PricewaterhouseCoopers (PWC) to suggest a business plan and revised repayment terms for its debt by end of March 2009. This is in the hope of stopping the debt collection agencies moving in and the inevitable need for administration.

The investment bank, Lazard, is holding negotiations with lenders with request to wave covenants over next two quarters. Ineos is faced with possibility of failing to honour its loan conditions due to steep fall in petrochemical prices. The group will have to secure support of two-third of lenders, who are members of 230-strong syndicate that includes hedge funds and banks, for the approval of deal. Core banks, Barclays and Merrill Lynch have agreed to back the deal.

Petrochemicals consultant CMAI is preparing ‘state of the industry’ report which is likely to be used for justifying PWC’s plan. Lenders are also seeking help of restructuring specialists to get best possible terms from Ineos.

Ineos, claiming to be the third-biggest chemicals company in the world, announced that its earnings before taxes, interest amortisation and depreciation were €1.3bn in first three quarters, down €400m from same period last year.

According to chief finance officer John Reece, group has already started cash flow optimisation by cutting fixed costs, improving working capital ratio and curtailing capital expenditure.