Chemtura receives final approval of US$400 mln debtor-in-possession financing

Global specialty chemicals maker Chemtura Corporation announced that it has received a final approval of its US$400 mln debtor-in-possession (DIP) credit facility by the United States Bankruptcy Court for the Southern District of New York. The facility is arranged by Citibank, N.A., as administrative agent. The plastic additives maker earlier received interim approval from the Court to access US$190 mln under the DIP financing facility on March 20, 2009. As previously announced, Chemtura and its U.S. subsidiaries filed voluntary Chapter 11 petitions on March 18, 2009. None of Chemtura's non-U.S. subsidiaries was included in the filings. The DIP financing, combined with cash from the Company's ongoing operations, will continue to provide company with financial flexibility to operate its business in the ordinary course. This financing will allow the Company to continue funding employee wages and benefits, payments to raw material suppliers and other customary business obligations as Chemtura proceeds with its financial restructuring. Additionally, in connection with the final approval of the DIP facility, Chemtura obtained approval of an amendment to that facility, which significantly increases Chemtura's ability to provide additional liquidity to its foreign non-debtor subsidiaries and affiliates if and when it is needed.