Powder & Bulk Solids is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Chemtura Files Amended Plan of Reorganization

Chemtura Corp., debtor-in-possession, has announced that it and 26 of its U.S. affiliates have filed a revised Plan of Reorganization (the "Plan") and related Disclosure Statement with the United States Bankruptcy Court for the Southern District of New York (the "Court"). The Plan and Disclosure Statement, like the previous versions filed on June 17, 2010, were filed with the support of the company's official committee of unsecured creditors and the ad hoc committee of the company's bondholders. As with the June 17 version of the Plan, Chemtura continues to provide the potential to satisfy all creditors' claims in full, as well as offering value to equity holders.

One of the significant provisions of the Plan and related Disclosure Statement is the conclusion that, in order to resolve certain asserted diacetyl liabilities, Chemtura's Canadian subsidiary, Chemtura Canada Co./Cie, intends to file for protection along with the current U.S. Debtors under Chapter 11 of the Bankruptcy Code, together with a recognition proceeding in Canada under the Companies' Creditors Arrangement Act (CCAA). The company expects Chemtura Canada's Chapter 11 and CCAA proceedings to be brief and that Chemtura Canada will emerge at the same time as Chemtura's U.S. operations. Through this action, Chemtura expects to extend to Chemtura Canada the protection from and treatment of certain asserted diacetyl liabilities at the same time as Chemtura resolves certain of its diacetyl liabilities already being addressed in its U.S. reorganization. BioLab Canada and the Company's other non-U.S. operations will not be subject to the requirements of the U.S. Bankruptcy Code or CCAA. Chemtura's U.S., Canadian and worldwide operations are continuing as normal and will continue as normal after the commencement of Chemtura Canada's reorganization.

Under the terms of the Plan and motions to be presented to the Court at the outset of Chemtura Canada's Chapter 11 filing, all creditors of Chemtura Canada, other than holders of diacetyl claims, including employees and suppliers, will receive payment for all pre-filing claims in full. Post-filing claims also will be paid in full, in cash, according to normal terms as they come due. Chemtura Canada will seek express Court orders to help ensure the continuation of normal operations and trade practices, including paying vendor claims, employee wages, salaries and related benefits, and honoring all current customer policies and programs, in the ordinary course of business.

"The filing of our revised Plan and Disclosure Statement represents further progress in our restructuring and another step toward emerging in the coming months," said Craig A. Rogerson, Chemtura's chairman, president and chief executive officer. "We determined, with the support of our major constituents, that a court-supervised process for Chemtura Canada on an accelerated basis is the fastest and most effective way to resolve certain asserted diacetyl liabilities in Canada, while ensuring that all of Chemtura Canada's other secured and unsecured claims are paid in full and in cash according to their normal terms. We are confident that we are taking the appropriate steps to expedite the Company's emergence and to position Chemtura as a financially strong competitor in the specialty chemicals industry."

Rogerson added, "Throughout this process, Chemtura has maintained its focus on enhancing all aspects of our customers' experience to drive growth and long-term value creation. We thank our customers, employees and suppliers for their continued support and we look forward to continuing to meet our customers' needs as we proceed towards emergence."

The Court has scheduled a hearing to consider approval of the Disclosure Statement on July 21, 2010. In the event the Disclosure Statement is approved by the Court on July 21, 2010, the Company expects to pursue Court approval of the Plan for Chemtura Canada at the same time as with respect to the U.S. Debtors. Chemtura remains on track to emerge from Chapter 11 protection in the coming months.

Chemtura's revised Plan and Disclosure Statement are available free of charge at www.kccllc.net/chemtura. Additionally, Chemtura has established a toll-free Restructuring Information Hotline for interested parties, in the United States at 866-967-0261 or internationally at 310-751-2661.

The Disclosure Statement is subject to approval by the Court, and the Amended Plan is subject to confirmation by the Court. This press release is not intended as a solicitation for a vote on the Plan within the meaning of section 1125 of the Bankruptcy Code.

Chemtura, with 2009 sales of $2.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection and pool, spa and home care products. Additional information concerning Chemtura is available at www.chemtura.com.

TAGS: News News