Methanol Chemicals Company (Chemanol) [2001.SE] has signed an agreement to restructure its short and long-term liabilities that include an outstanding murabaha credit facility worth SAR327.7mn that was originally issued on 5 June, 2011 with a par value of SAR832mn. The refinancing agreement also includes a bilateral loan of SAR309mn to Chemanol and the announcement noted that the murabaha margin would increase as of the signed date. The total loans come to SAR636.7mn, which the company will repay in ten semiannual installments starting on 28 June 2018 to 31 December 2022.   Chemanol's decision to restructure its debt facilities comes in line with our expectation that the company is in dire need to do so as its liquidity position has been under stress for some time now, with losses eroding the balance sheet position. While this is positive, we still expect the company’s operations to remain under stress in light of i) weak prices; and ii) depressed demand levels for the company's products. Accordingly, we remain Sellers of the name. (Tadawul)   Chemanol: SAR6.37 as of 28 August 2016, Rating: Sell, FV: SAR4.00 per share, MCap: USD205mn, CHEMANOL AB / 2001.SE