Specialty chemicals maker Chemtura Corporation has announced that the companies along with 26 of its U.S. affiliates have filed for relief under Chapter 11 of the United States Bankruptcy Code. However, the company's non-U.S. subsidiaries are not included in the filing and will not be subject to the requirements of the U.S. Bankruptcy Code. Chemtura's U.S. and worldwide operations are expected to continue without interruption during the restructuring process. "This (global economic recession) has led to a significant decrease in our liquidity and cash flow. Despite our efforts to increase liquidity, including through the potential sale of a business, our reduced liquidity position, combined with the anticipated expiration of our bank waiver, led us to determine that a court-supervised restructuring was the best course of action," commented Craig A. Rogerson, Chemtura's Chairman, President and Chief Executive Officer.
Also, Chemtura has received a commitment for up to US$400 mln in debtor-in-possession (DIP) financing from Citibank, N.A., as administrative agent. Upon Court approval, the DIP financing, combined with cash from the Company's ongoing operations, will be used to support the business during the Chapter 11 process. In addition, the Company anticipates that it will continue to meet its obligations going forward to its employees, customers and suppliers. Rogerson continued, "We look forward to working together with all of our stakeholders to complete a successful financial restructuring. Our worldwide operations are expected to continue without interruption throughout the restructuring process, and Chemtura remains committed to providing our customers with the highest quality products and services."