Jim Ratcliffe’s Chemicals Bonds Are Provoking a Bad Market Reaction

An eye for unloved commodity chemicals assets and an unquenchable thirst for debt helped the British founder of Ineos Ltd., Jim Ratcliffe, acquire a $15 billion fortune and a stable of high-profile consumer and sporting ventures. Now a prolonged petrochemicals downturn has caused the group’s bonds and loans to hit the skids and its leverage to skyrocket.

The situation isn’t helped by the 73-year-old’s fondness for borrowing and paying himself billions of pounds in dividends used to fund expensive side projects, including founding a carmaker and buying a stake in Manchester United Plc.1 Given Ineos’ difficulties, scaling back some of those extracurricular extravagances feels appropriate.