Middlebury, Connecticut
March 18, 2009
Chemtura Corporation (NYSE: CEM) today announced that it and
26 of its U.S. affiliates (together, the "Company") have filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code in the United States Bankruptcy Court for
the Southern District of New York (the "Court").
Chemtura's non-U.S. subsidiaries were not included in the filing
and will not be subject to the requirements of the U.S.
Bankruptcy Code. Chemtura's U.S. and worldwide operations are
expected to continue without interruption during the
restructuring process.
Craig A. Rogerson, Chemtura's Chairman, President and Chief
Executive Officer, said, "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. Despite our efforts to increase liquidity,
including through the potential sale of a business, our reduced
liquidity position, combined with the anticipated expiration of
our bank waiver, led us to determine 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."
Today Chemtura announced that, in conjunction with the filing,
it has received a commitment for up to $400 million in
debtor-in-possession (DIP) financing from Citibank, N.A., as
administrative agent. Upon Court approval, the DIP financing,
combined with cash from the Company's ongoing operations, will
be used to support the business during the Chapter 11 process.
In addition, the Company anticipates that it will continue to
meet its obligations going forward to its employees, customers
and suppliers.
"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. "We look forward to working together
with all of our stakeholders to complete a successful financial
restructuring. 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. We appreciate the ongoing
dedication of all our employees, whose hard work is critical to
our success and the future of the Company. I would also like to
thank our customers, suppliers and business partners for their
continued support during this process."
As previously announced on December 11, 2008, in response to
declining order volumes, the Company has taken a number of
actions to reduce costs and improve liquidity, including
realigning its businesses into strategic business units,
suspending the payment of dividends, reducing inventories,
reducing fixed costs by $50 million, adjusting plant production
rates to meet reduced customer demand, aggressively managing
working capital and establishing a new Executive Committee to
oversee these initiatives. In addition, on February 25, 2009,
the Company announced plans to further reduce inventories and to
restrict capital expenditures to approximately $60 million
during fiscal year 2009.
Chemtura will file a series of motions today with the Court to
ensure the continuation of normal operations, including
requesting Court approval to continue paying employee wages and
salaries and providing employee benefits without interruption.
The Company has also asked for authority to continue honoring
all current customer policies and programs to ensure that the
restructuring process will not negatively affect its customers.
The Company expects that the Court will approve these requests.
During the Chapter 11 process, suppliers will be paid in full
for all goods and services provided after the filing date as
required by the Bankruptcy Code, and Chemtura has taken steps to
ensure continued supply of goods and services to its customers.
Chemtura has established a toll-free Restructuring Information
Hotline for employees, suppliers, customers, investors and other
interested parties, in the United States at 866-967-0261 or
internationally at 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 (NYSE: CEM), 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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