Hexion Emerges from Chapter 11
Hexion has emerged from Chapter 11 bankruptcy protection as of Jul. 1 following confirmation of its financial reorganization plan by the US Bankruptcy Court for the District of Delaware on Jun. 24.
The company announced it had reduced its debt of more than $2 billion, received an infusion of $300 million in equity capital through a rights offering and raised approximately $2 billion in exit financing.
The Columbus, Ohio-based resins producer filed for bankruptcy protection on Apr. 1, 2019, as part of a plan to reduce its $3.9 billion net debt burden. The filing included all Hexion’s US subsidiaries and a non-operating entity in Nova Scotia, Canada.
Hexion said that with a strengthened capital structure and substantial free cash flow after debt service, it is now “well-positioned to make substantial reinvestments into its businesses to fuel strategic growth and drive value for its stakeholders”.
President and CEO Craig Rogerson said Hexion will accelerate new product development. He commented: “Our growth strategy will be driven by investments in innovative products using our research and development capabilities and strategic partnerships, capitalizing on our global manufacturing footprint and commitment to sustainability. Going forward, we are well-positioned to take advantage of our operational momentum.”
Hexion regards itself as the global leader in forest products and epoxy, phenolic and coatings resins, holding the number one or two market positions.
