Chemtura Files for Plan of Reorganization
Bankrupt U.S. chemicals maker Chemtura filed for a plan of reorganization with a U.S. court that would pave the way for the company to emerge from bankruptcy protection.
The plan, filed late on Thursday, is supported by the company's unsecured creditors and bondholders and requires the bankruptcy court's approval to become effective. Chemtura said the plan has the potential to satisfy all creditors' claims in full, as well as offering value to equity holders. It said in a statement that it expects to remain on track to emerge from Chapter 11 protection in the coming months.
Once the reorganization plans become effective, new Chemtura will issue up to 100 million shares of common stock to its debtors, court documents show. The company would then aim to list the New Common Stock on a national securities exchange, with the initial goal of listing on the New York Stock Exchange or Nasdaq by the effective date, as per the filing.
If the plan is approved by the court, then the company's new board will consist of nine directors, Chemtura said in the filing. Chemtura, with 2009 sales of about $2.5 billion, was hit by reduced demand and filed for bankruptcy protection last year, listing assets in excess of $3 billion.
