Middlebury, Connecticut -- Chemtura Corp. said 17 Dec that it now expects to emerge from its reorganisation under Chapter 11 of US bankruptcy protection in summer 2010, after receiving more than 14000 claims under the bankruptcy process, which it will take some time to deal with.
Chemtura said in the meantime, it "is pursuing growth opportunities while making significant progress in enhancing the efficiency and effectiveness of its businesses."
These initiatives include:
* Increasing strategic investments to improve efficiency;
* Increasing investment in R&D with new product introductions such as GeobromTM, Weston(R) 705, and two new flame retardants being produced on a pilot plant scale;
* Improving order processing;
* Transferring certain operations to third-party logistics providers;
* Growing its antioxidant business with expansion at Gulf Stabilizer Industries (GSI),its joint venture facility in Al Jubail, Saudi Arabia; and
Advancing its JV between Al Zamil Group Holding Co. and Chemtura Organometallics GmbH, to build a metal alkyls facility in Jubail Industrial City, Saudi * Arabia.
Discussing financial objectives, Chemtura said it has:
* Had positive cash flow over the last four quarters and accumulated substantial cash balances;
* Exceeding performance levels required by the Debtor-In-Possession Credit Agreement; and
* Identified, and is now working closely with, several financial institutions it expects will lead its exit financing as a sound, stand-alone company.
In terms of exiting Chapter 11, Chemtura said having received more than 14 000 claims it has decided expand its exit timeline to fully evaluate these via the legal process. As a result, Chemtura's goal is now to emerge from Chapter 11 in the summer of 2010.