Chemtura Gets Approval for Reorganization Plan Vote

A U.S. bankruptcy court has given approval for Chemtura to begin soliciting votes from creditors for its reorganization plan. The company proposes to fully repay all its secured and unsecured creditors and expects the plan to be effective before Sept. 30. Judge Robert Gerber of U.S. Bankruptcy Court in New York, in a ruling dated Thursday, approved Chemtura's disclosure statement.

A disclosure statement gives claimholders in-depth information about a bankrupt company's financial affairs ahead of voting on a proposed reorganization plan. Earlier this month, Chemtura asked the court to approve $1.025 billion in bankruptcy exit financing to help fund operations after it emerges from Chapter 11 protection.

It filed for bankruptcy protection last year after being hit by reduced demand. At the time, it listed assets in excess of $3 billion.