Middlebury, Connecticut -- Chemtura Corp. has gained approvals by the US Bankruptcy Court for measures which will allow it to continue normal business during restructuring.
"The Court's approval is a positive step forward in resolving our financial challenges, solidifying the basis of confidence of our suppliers and customers, and enabling our operations to continue without interruption," said Craig Rogerson (pictured), Chemtura's chairman, president and ceo, in the 23 March statement. "It is a significant step forward in our plan to position Chemtura as a strong, viable, and profitable competitor in the specialty chemicals marketplace."
Chemtura now has interim access to $190 million of its $400 million Debtor-in-Possession financing (DIP) from Citibank NA, as administrative agent. This, with cash from the company's ongoing operations, will provide Chemtura with financial flexibility to operate its business.
The company can also pay all outstanding wages, health benefits, and other employee obligations. Also, Chemtura can continue to honour all of its current customer policies and programmes, to ensure the restructuring process will not affect customers.
Chemtura and 26 US affiliates filed voluntary Chapter 11 petitions in the US Bankruptcy Court 18 March 2009. Its non-US subsidiaries are not included in the filing.