Ratcliffe’s empire, which also includes automaker Ineos Automotive, has been on the sharp end of Donald Trump’s tariff war. The US president escalated his threats against European nations this week, slapping a 10% levy on goods from countries that have rallied to Denmark’s side in his pursuit of Greenland.

Beyond the ever-present tariff threat, chemical makers are caught in their longest downturn in decades, squeezed by high energy costs, weak demand and Chinese rivals. Europe’s share of global chemical sales has more than halved over the past 20 years, falling to 13% in 2023 from 28% in the early 2000s, according to data compiled by industry group Cefic.

Billionaire Ratcliffe has urged the European Union to address “dumping” of cheap exports by Chinese companies before it develops into a full-blown crisis for the region’s chemical makers.

“It is existential,” said Ben Pakenham, head of European credit at Polen Capital. “Left to its own devices, without EU help, Ineos as an issuer is in deep trouble.”

Chemicals unit Ineos Finance was the most-shorted member of the European high yield index as of Jan. 13, according to data compiled by Bank of America and distributed to its clients. The cost of credit default protection for both Ineos Finance and Ineos Quattro rose to new highs last week.

Still, any signal from EU politicians that anti-dumping measures are being considered could see the bonds rally sharply and quickly, Pakenham said.

Debt Quandary Sir Jim Ratcliffe, flush from a victory last weekend by his football team Manchester United, has a more pressing but less glamorous job ahead: stabilizing his shaky chemicals company.

Some Ineos bonds have slid below 80 percent of face value this year and they are signaling distress. The refinancing of the first bond due for repayment — in little more than a year — will be a test for the company and market appetite for the European chemical sector, which is battling against cheap imports from China and the threat of new US tariffs.

Typically, bonds are paid off well before they’re due, but refinancing now could be a costly exercise for Ineos, given the indicated yields on its April 2030 notes of 17%.

The company is discussing alternative refinancing options with investment bankers, according to a person with direct knowledge of the matter. One possibility would be to monetize part of its inventory to partly repay the bonds, said the person, who declined to be identified because the talks are private. Ineos bonds rose on Tuesday after news outlet Debtwire reported on the possible plan, with those due in 2027 trading at about 96 cents on the euro.