Middlebury, Connecticut -- Chemtura Corp.'s US operations -- consisting of 26 of its US affiliates -- have filed in New York to go into bankruptcy protection, under Chapter 11 of the US Bankruptcy Code.
Chemtura said it non-US subsidiaries are not included in the filing and will not be subject to the requirements of the US Bankruptcy Code. The company insisted that its US and worldwide operations will continue without interruption during the restructuring process.
"Like other companies in our industry and around the world, Chemtura's order volumes have declined markedly in recent months due to the impact of the global economic recession on our customers and the industries they serve. This has led to a significant decrease in our liquidity and cash flow," commented Craig Rogerson, Chemtura's chairman, president and chief executive officer, in the company's 18 March announcement.
Despite its efforts to increase liquidity, including the potential sale of a business, Rogerson (pictured) said reduced liquidity and anticipated expiration of a bank waiver meant that "a court-supervised restructuring was the best course of action."
Through this process, we will continue to focus on operating our business while continuing our efforts to strengthen our balance sheet and gain financial flexibility in order to position Chemtura as a strong, viable, and profitable competitor in the specialty chemicals marketplace."
Chemtura said it has received a commitment for up to $400 million in debtor-in-possession (DIP) financing from Citibank, NA, as administrative agent. Such DIP financing, with cash from the company's ongoing operations, will be used to support the business during the Chapter 11 process.
"Chemtura has a solid, diverse portfolio of businesses with strong operations around the world, and our lenders have shown tremendous confidence in our business by providing additional funding," Rogerson said. "Our worldwide operations are expected to continue without interruption throughout the restructuring process, and Chemtura remains committed to providing our customers with the highest quality products and services.