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:
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