Company News

Chemtura on target to exit bankruptcy
While it is still in ongoing discussions with creditors to reach a consensual Chapter 11 plan of reorganisation by 17 June, US chemical company Chemtura is finalising an agreement with a group of bondholders on confidentiality terms that will allow its largest bondholders to engage in direct negotiations with Chemtura.

Chemtura says it is hopeful that the new agreement will bring together the interests of all its stakeholders in a consensual plan of reorganisation, which will permit an exit from Chapter 11 in the near term, thereby maximising value for all of them."

The plan as currently contemplated will specify treatment for funded debt obligations, trade claims and litigation claims, including providing treatment for diacetyl litigation claims in an agreed or judicially estimated amount.

Chemtura also expects that the plan will provide for payment of creditors in the form of cash or common stock in a reorganised, publicly traded company. While there can be no guarantee regarding the value or type of recovery available to any class of creditors or interest holders under the plan, it is anticipated that creditors will be paid at or near the full value of their claims and there may well be recovery available for holders of Chemtura's common stock.   Chemtura says it continues to discuss the specifics of the plan with its stakeholders, including the valuation of reorganised company, the specific form of consideration that will be available to various types of constituencies and the funding of such consideration.

Chemtura's CEO Craig Rogerson commented, "Our intent is to emerge from Chapter 11 as quickly and efficiently as possible. We believe that filing a plan of reorganisation with the support of all of our major constituencies is the best way to accomplish this goal. Chemtura intends to file a plan of reorganisation by June 17 and accordingly intends to file a motion to extend its exclusive rights to file a Chapter 11 plan and solicit votes thereon in order to facilitate the Chapter 11 process."

For it to emerge from its Chapter 11 proceedings, a plan of reorganisation will have to be confirmed by the bankruptcy court after solicitation of votes thereon. The plan is expected to include closing conditions that will need to be satisfied before emergence.