Chemtura Corp. (PINK:CEMJQ) Drops Below Its Trading Range
On Friday Chemtura Corp. ( PINK:CEMJQ ) stock reported a record volume for the past 52 weeks. Following the confirmation of the reorganization plan, the share price dropped below its trading range as investors did not consider the plan beneficial for the shareholders. CEMJQ share price closed the market at $0.392 after a 31 times higher than the average number of shares was traded within the session. On that 52-week record volume, the stock lost 6.67% of its value and fell below the lower price band of $0.41. There are some more support levels before the yearly bottom is hit and today's session might show if the market expects that CEMJQ will emerge as a stronger company from its bankruptcy proceeding. On Thursday evening the company announced that the court has approved its Plan of Reorganization , that did not seem beneficial for the current shareholders as they previously claimed that the value of the company has been underestimated. Huge dilution is planned as well as under the plan all secured creditors shall be paid out in cash or in shares and 100 million new shares of common stock shall be issued. The company has recently raised $750 million in exit financing to satisfy the claims according to the plan. At the end of August, $455 million were raised in a private placement of senior notes due 2018 and Chemtura also entered into a secured loan facility to borrow an aggregate principal amount of $295 million.