Philadelphia, Pennsylvania -- Chemtura Corp. intends to file a plan of reorganisation by 17 June and emerge from Chapter 11 bankrputcy protection as quickly as possible, ceo Craig Rogerson said in a 25 May statement.
"We believe that filing a plan of reorganisation with the support of all our major constituencies is the best way to accomplish this goal," Rogerson added.
The statement said Chemtura is in "active and ongoing discussions" with its Official Unsecured Creditors Committee and Official Equity Committee in an effort to reach a consensual Chapter 11 plan of reorganisation, adding that it is finalising an agreement with an existing ad hoc committee of bondholders on confidentiality terms that will allow Chemtura's largest bondholders to engage in direct negotiations with the company regarding the terms of a Chapter 11 plan.
Chemtura filed for Chapter 11 bankruptcy protection in March 2009 following the impact of the global economic recession. The company then filed a motion on 4 Feb with the US Bankruptcy Court for the Sourthern District of New York for the approval of a new debtor-in-posession (DIP) agreement to refinance the company's existing $400-million DIP facility, provide improved financing and credit terms, additional financial flexibility and permit necessary capital expenditures, a 4 Feb company statement said.
"Chemtura continues to discuss the specifics of the plan with its stakeholders, including the valuation of reorganised Chemtura, the specific form of consideration that will be available to various types of constituencies and the funding of such consideration," the statement added. (RD)