PHILADELPHIA, Oct. 21 /PRNewswire-FirstCall/ -- Chemtura Corporation, debtor-in-possession (Pink Sheets : CEMJQ ) (the "Company" or "Chemtura"), today announced that the United States Bankruptcy Court for the Southern District of New York (the "Court") issued a decision confirming its Plan of Reorganization (the "Plan"). The Plan will become effective after the Court enters a written order reflecting this ruling and other Plan conditions have been satisfied. Chemtura currently expects to emerge from Chapter 11 in the upcoming weeks, as soon as the Plan conditions are satisfied.
"The Court's decision confirming our Plan represents a major milestone and is one of the last remaining steps in our restructuring," said Craig A. Rogerson, Chemtura's Chairman, President and Chief Executive Officer. "We will emerge from this process as a significantly stronger company, having de-levered our balance sheet, improved our cost structure, substantially reduced our cash fixed costs and significantly reduced our environmental and other liabilities. Chemtura has leading market positions in each segment we serve and with strong globally diverse assets, talented employees and loyal customers. We are confident that Chemtura is poised to emerge as a financially stronger, reliable and a more competitive, leaner global enterprise."
Rogerson continued, "We are very proud of all that we have been able to accomplish and look forward to working with all of our stakeholders following our emergence. I would like to thank our employees for their ongoing commitment to our company, and our customers and suppliers for their support throughout this process. We will continue to be a leading diversified global developer, manufacturer and marketer of performance-driven, engineered specialty chemicals, and we are committed to global sustainability through 'greener technology' and to developing engineered chemical solutions that meet our customers' evolving needs."
The Company has pre-funded its approximately $750 million in exit financing, which is currently being held in escrow and will be released upon emergence to satisfy all undisputed claims in cash and/or stock, as outlined in the Plan, on or shortly after the emergence date. The Company announced on October 20, 2010 its election to extend the escrow period on its exit financing to November 25, 2010.
In connection with confirmation of the Plan, the Company expects that Chemtura's Canadian subsidiary, Chemtura Canada Co./Cie ("Chemtura Canada"), which commenced its Chapter 11 case on August 8, 2010, will emerge from its pending proceedings under the Canadian Companies' Creditors Arrangement Act at substantially the same time as the U.S. operations.
The Court's decision confirming the Plan is available free of charge at www.kccllc.net/chemtura.
About the Company
Chemtura, with 2009 sales of $2.3 billion, is a global manufacturer and marketer of specialty chemicals, agrochemicals, and pool, spa and home care products. Additional information concerning Chemtura is available at www.chemtura.com.
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:
- The ability to complete a restructuring of our balance sheet pursuant to the terms of the Plan;
- The ability to consummate the Plan;
- The ability to be compliant with our debt covenants or obtain necessary waivers and amendments;
- The ability to service our indebtedness levels;
- General economic conditions;
- Significant international operations and interests;
- The ability to obtain increases in selling prices to offset increases in raw material and energy costs;
- The ability to retain sales volumes in the event of increasing selling prices;
- The ability to absorb fixed cost overhead in the event of lower volumes;
- Pension and other post-retirement benefit plan assumptions;
- The ability to improve profitability in our Industrial Engineered Products segment as the general economy recovers from the recession;
- The ability to implement the El Dorado, Arkansas restructuring program;
- The ability to obtain growth from demand for petroleum additive, lubricant and agricultural product applications;
- 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;
- The ability to sell methyl bromide due to regulatory restrictions;
- Changes in weather conditions which could adversely affect the seasonal selling cycles in both our Consumer Performance Products and Chemtura AgroSolutions Engineered Products segments;
- Changes in the availability and/or quality of our energy and raw materials;
- The ability to collect our outstanding receivables;
- Changes in interest rates and foreign currency exchange rates;
- Changes in technology, market demand and customer requirements;
- The enactment of more stringent U.S. and international environmental laws and regulations;
- The ability to realize expected cost savings under our restructuring plans, Six Sigma and Lean manufacturing initiatives;
- The ability to recover our deferred tax assets;
- The ability to support the goodwill and long-lived assets related to our businesses; and
- Other risks and uncertainties detailed in Item 1A. Risk Factors in our filings with the Securities and Exchange Commission.
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.
SOURCE Chemtura Corporation