Middlebury, Connecticut
April 29, 2009
Financing facility provides
additional liquidity to foreign non-debtor subsidiaries and
affiliates
Chemtura Corporation (OTC Pink Sheets: CEMJQ) today
announced that the United States Bankruptcy Court for the
Southern District of New York (the “Court”), granted final
approval of its $400 million debtor-in-possession (DIP) credit
facility. The facility is arranged by Citibank, N.A., as
administrative agent. The Company previously received interim
approval from the Court to access $190 million under the DIP
financing facility on March 20, 2009.
The DIP financing, combined with cash from the Company’s ongoing
operations, will continue to provide Chemtura with financial
flexibility to operate its business in the ordinary course. This
financing will allow the Company to continue funding employee
wages and benefits, payments to suppliers and other customary
business obligations as Chemtura proceeds with its financial
restructuring. Additionally, in connection with the final
approval of the DIP facility, Chemtura obtained approval of an
amendment to that facility, which significantly increases
Chemtura’s ability to provide additional liquidity to its
foreign non-debtor subsidiaries and affiliates if and when it is
needed.
"We are pleased to have received final Court approval of our DIP
credit facility and the important amendment to the facility,"
said Craig A. Rogerson, Chemtura’s Chairman, President and Chief
Executive Officer. "We believe that the final DIP approval
provides the Company with the financial flexibility necessary to
continue running our operations as normal through the remainder
of the restructuring process. I would like to thank all our DIP
lenders, led by Citibank, and the members of the Unsecured
Creditors’ Committee for their focus on the needs of Chemtura
and their continued support throughout this process.
Importantly, I believe the Court's final approval of our DIP
facility, which gives Chemtura full access to those funds, will
reinforce the confidence that our customers and suppliers have
shown in our company in recent weeks, helping us to maintain and
build on these important relationships.”
Mr. Rogerson concluded, “I would like to thank all of our
employees for their hard work and support, and our suppliers and
customers for their loyalty during this process. We look forward
to emerging from our restructuring as a strong, viable, and
profitable competitor in the specialty chemicals marketplace.”
As previously announced, Chemtura and its U.S. subsidiaries
filed voluntary Chapter 11 petitions on March 18, 2009. None of
Chemtura’s non-U.S. subsidiaries was included in the filings.
Chemtura has established a Restructuring Information Hotline for
employees, suppliers, customers, investors and other interested
parties, at 866-967-0261 or 310-751-2661. More information is
also available on Chemtura’s Web site, www.chemtura.com, where
the Company has set up a special restructuring section. For
access to Court documents and other general information about
the Chapter 11 cases, please visit www.kccllc.net/chemtura.
Chemtura Corporation (OTC Pink Sheets: CEMJQ), with 2008
sales of $3.5 billion, is a global manufacturer and marketer of
specialty chemicals, crop protection products, and pool, spa and
home care products. Learn more about us on our Web site at
www.chemtura.com.
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