Chemtura Corporation Receives Final Approval of $400 Million Debtor-in-Possession Financing
On Wednesday April 29, 2009, 2:37 pm EDT
MIDDLEBURY, Conn.--(BUSINESS WIRE)--Chemtura Corporation (OTC Pink Sheets: CEMJQ - News) 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.
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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
Kurtzman Carson Consultants LLC.
Chemtura Corporation (OTC Pink Sheets: CEMJQ - News), 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.
Forward-Looking Statement
This document includes forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933 and Section 21(e) of the Exchange Act of 1934. 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 and significantly strengthen our company;
* The uncertainties of the Chapter 11 restructuring process;
* The ability to complete asset
sales;
* The ability to reduce 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 successfully complete our restructuring programs and the turnaround of our Polymer Additives segment;
* The ability to obtain growth from demand for petroleum additive, lubricant and agricultural product applications;
* The ability to sustain profitability in our Crop Protection business due to new generic competition and the failure to secure new products and technology. Additionally, the Crop Protection business 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 Products and Crop Protection 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 domestic 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 successfully complete the Company’s new SAP platform initiative;
* The ability to support the goodwill related to our business segments; and
* Other risks and uncertainties detailed in Item 1A. Risk Factors or 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 and such information will not necessarily be updated by the Company.
Contact:
Chemtura Corporation
Investor Relations
Stephen Forsyth, 203-573-2213
or
Chemtura Corporation
Media Relations
John Gustavsen, 203-573-3224
or
Joele Frank, Wilkinson Brimmer Katcher
Andrew Brimmer or Meaghan Repko
212-355-4449
http://http://finance.yahoo.com/news...2647.html?.v=1
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