Attached files
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| 8-K - LANXESS Solutions US Inc. | v190334_8-k.htm |
Ex.
99.1
| Contacts: |
Investors
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Stephen
Forsyth
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203-573-2213
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Media
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John
Gustavsen
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203-573-3224
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FOR IMMEDIATE
RELEASE
CHEMTURA
FILES AMENDED PLAN OF REORGANIZATION
Chemtura
Canada Co./Cie to File under Chapter 11 with a Recognition Proceeding Under CCAA
to Address Certain Asserted Diacetyl Liabilities Along With U.S.
Debtors
Chemtura Canada Co./Cie to Pay All
Secured and Unsecured Creditors of Chemtura Canada, Other than Holders of
Diacetyl Claims, in Full in the Ordinary Course of Business
Company’s
Other Non-U.S. Operations and BioLab Canada Not Included in Filing;
Worldwide
Operations to Continue as Normal
Company Remains on Track to Emerge in
the Coming Months
PHILADELPHIA
– July 9, 2010 – Chemtura Corporation, debtor-in-possession (Pink Sheets:
CEMJQ), today announced that it and 26 of its U.S. affiliates (together,
“Chemtura” or the “Company”) have filed a revised Plan of Reorganization (the
“Plan”) and related Disclosure Statement with the United States Bankruptcy Court
for the Southern District of New York (the “Court”). The Plan and
Disclosure Statement, like the previous versions filed on June 17, 2010, were
filed with the support of the Company’s official committee of unsecured
creditors and the ad hoc committee of the Company’s bondholders. As
with the June 17 version of the Plan, Chemtura continues to provide the
potential to satisfy all creditors’ claims in full, as well as offering value to
equity holders.
One of
the significant provisions of the Plan and related Disclosure Statement is the
conclusion that, in order to resolve certain asserted diacetyl liabilities,
Chemtura’s Canadian subsidiary, Chemtura Canada Co./Cie (“Chemtura Canada”),
intends to file for protection along with the current U.S. Debtors under
Chapter 11 of the Bankruptcy Code, together with a recognition proceeding
in Canada under the Companies’ Creditors Arrangement Act
(“CCAA”). The Company expects Chemtura Canada’s Chapter 11 and CCAA
proceedings to be brief and that Chemtura Canada will emerge at the same time as
Chemtura’s U.S. operations. 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 of its
diacetyl liabilities already being addressed in its U.S.
reorganization. BioLab Canada and the Company’s other non-U.S.
operations will not be subject to the requirements of the U.S. Bankruptcy Code
or CCAA. Chemtura’s U.S., Canadian and worldwide operations are
continuing as normal and will continue as normal after the commencement of
Chemtura Canada’s reorganization.
Under the
terms of the Plan and motions to be presented to the Court at the outset of
Chemtura Canada’s Chapter 11 filing, all creditors of Chemtura Canada, other
than holders of diacetyl claims, including employees and suppliers, will receive
payment for all pre-filing claims in full. Post-filing claims also
will be paid in full, in cash, according to normal terms as they come
due. Chemtura Canada will seek express Court orders to help ensure
the continuation of normal operations and trade practices, including paying
vendor claims, employee wages, salaries and related benefits, and honoring all
current customer policies and programs, in the ordinary course of
business.
“The
filing of our revised Plan and Disclosure Statement represents further progress
in our restructuring and another step toward emerging in the coming months,”
said Craig A. Rogerson, Chemtura’s Chairman, President and Chief Executive
Officer. “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. 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 specialty chemicals industry.”
Mr.
Rogerson added, “Throughout this process, Chemtura has maintained its focus on
enhancing all aspects of our customers’ experience to drive growth and long-term
value creation. We thank our customers, employees and suppliers for
their continued support and we look forward to continuing to meet our customers’
needs as we proceed towards emergence.”
The Court
has scheduled a hearing to consider approval of the Disclosure Statement on July
21, 2010. In the event the Disclosure Statement is approved by the
Court on July 21, 2010, the Company expects to pursue Court approval of the Plan
for Chemtura Canada at the same time as with respect to the U.S.
Debtors. Chemtura remains on track to emerge from Chapter 11
protection in the coming months.
Chemtura’s
revised Plan and Disclosure Statement are available free of charge at www.kccllc.net/chemtura. Additionally,
Chemtura has established a toll-free Restructuring Information Hotline for
interested parties, in the United States at 866-967-0261 or internationally at
310-751-2661.
The Disclosure Statement is subject to
approval by the Court, and the Amended Plan is subject to confirmation by the
Court. This press release is not intended as a solicitation for a
vote on the Plan within the meaning of section 1125 of the Bankruptcy
Code.
Chemtura,
with 2009 sales of $2.5 billion, is a global manufacturer and marketer of
specialty chemicals, crop protection and pool, spa and home care
products. Additional information concerning Chemtura is available at
www.chemtura.com.
###
Forward-Looking
Statement
This document includes forward-looking
statements within the meaning of Section 27(a) of the Securities Act of 1933, as
amended and Section 21(e) of the Exchange Act of 1934, as amended. These
forward-looking statements are identified by terms and phrases such as
"anticipate," "believe," "intend," "estimate," "expect," "continue," "should,"
"could," "may," "plan," "project," "predict," "will" and similar expressions and
include references to assumptions and relate to our future prospects,
developments and business strategies.
Factors that could cause our actual
results to differ materially from those expressed or implied in such
forward-looking statements include, but are not limited to:
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The ability to
complete a restructuring of our balance
sheet;
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The ability to
have the Bankruptcy Court approve motions required to sustain operations
during the Chapter 11 cases;
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The
uncertainties of the Chapter 11 restructuring process including the
potential adverse impact on our operations, management, employees and the
response of our customers;
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Our estimates
of the cost to settle proofs of claim presented in the Chapter 11
cases;
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The ability to
develop, confirm and consummate a Chapter 11 plan of
reorganization;
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The ability to
be compliant with our debt covenants or obtain necessary waivers and
amendments;
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The ability to
reduce our indebtedness
levels;
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General
economic conditions;
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Significant
international operations and
interests;
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The ability to
obtain increases in selling prices to offset increases in raw material and
energy costs;
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The ability to
retain sales volumes in the event of increasing selling
prices;
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The ability to
absorb fixed cost overhead in the event of lower
volumes;
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Pension and
other post-retirement benefit plan
assumptions;
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The ability to
improve profitability in our Industrial Engineered Products segment as the
general economy recovers from the
recession;
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The ability to
implement the El Dorado, Arkansas restructuring
program;
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The ability to
obtain growth from demand for petroleum additive, lubricant and
agricultural product
applications;
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The ability to
restore profitability in our Chemtura AgroSolutions Engineered Products
segment as demand conditions recover in the agrochemical market.
Additionally, the Chemtura AgroSolutions Engineered Products segment is
dependent on disease and pest conditions, as well as local, regional,
regulatory and economic
conditions;
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The ability to
sell methyl bromide due to regulatory
restrictions;
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Changes in
weather conditions which could adversely affect the seasonal selling
cycles in both our Consumer Performance Products and Chemtura
AgroSolutions Engineered Products
segments;
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Changes in the
availability and/or quality of our energy and raw
materials;
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The ability to
collect our outstanding
receivables;
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Changes in
interest rates and foreign currency exchange
rates;
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Changes in
technology, market demand and customer
requirements;
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The enactment
of more stringent U.S. and international environmental laws and
regulations;
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The ability to
realize expected cost savings under our restructuring plans, Six Sigma and
Lean manufacturing
initiatives;
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The ability to
recover our deferred tax
assets;
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The ability to
support the goodwill and long-lived assets related to our businesses;
and
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Other risks
and uncertainties detailed in Item 1A. Risk Factors in our filings with
the Securities and Exchange
Commission.
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These statements are based on the
Company's estimates and assumptions and on currently available information. The
forward-looking statements include information concerning the Company's possible
or assumed future results of operations, and the Company's actual results may
differ significantly from the results discussed. Forward-looking information is
intended to reflect opinions as of the date this press release was issued. The
Company undertakes no duty to update any forward-looking statements to conform
the statements to actual results or changes in the Company's
operations.