Philadelphia, Pennsylvania -- Chemtura Corp. and 26 of its US affiliates have filed a revised Plan of Reorganisation and related Disclosure Statement with the US Bankruptcy Court for the Southern District of New York.
This plan and disclosure statement, like previous versions filed on 17 June 2010, were filed with the support of the company's official committee of unsecured creditors and the ad hoc committee of its bondholders. Chemtura said it continues with this new plan to provide the potential to satisfy all creditors' claims in full, as well as offering value to equity holders.
A significant provision of this latest plan follows 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 US debtors under Chapter 11 of the Bankruptcy Code.
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 diacetyl liabilities already being addressed in its US reorganisation.
"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, said Craig Rogerson, Chemtura's chairman, president and chief executive officer.
"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 speciality chemicals industry," he continued.