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Commences court-supervised financial restructuring with support of majority lenders
Continues to deliver leading specialty material solutions to customers worldwide without interruption
Expects to move through process on expedited basis and emerge with enhanced flexibility to drive innovation and support growth
Trinseo PLC, a specialty material solutions provider, has taken the next step to implement the pre-packaged restructuring plan described in the previously announced Restructuring Support Agreement with parties that hold a significant majority of its debt. The transactions contemplated under the RSA will reduce Trinseo’s debt by approximately $2.0 billion and reduce its annual interest expense by approximately $140 million.
To implement the pre-packaged restructuring plan described in the RSA, the Company with the support of lenders collectively holding a majority of its senior secured debt has commenced voluntary chapter 11 cases in the United States Bankruptcy Court for the Southern District of Texas. Trinseo expects to move through this process on an expedited basis, subject to customary regulatory approvals, and emerge with a stronger financial foundation and enhanced flexibility to drive innovation and support growth.
The Company is continuing to operate as usual and continues to deliver the same high-quality products and services its customers value. No concessions from employees, customers, vendors or suppliers are part of the RSA.
While the restructuring is expected to benefit the entire Trinseo enterprise, the chapter 11 cases are limited to certain of Trinseo’s U.S. affiliates, and certain non-operating affiliates outside the U.S. No other Trinseo affiliates are included in the chapter 11 cases.
“We take this next step in strengthening our financial foundation confident that we are best positioning Trinseo for the future,” said Frank Bozich, President and Chief Executive Officer of Trinseo. “Through this process, we will significantly improve our balance sheet and financial flexibility while continuing to manufacture products, serve our customers, drive innovation and uphold our commitments to suppliers and vendors. The tremendous support from our lenders reflects their strong belief in Trinseo and the important role we play for customers around the world. We are grateful to our employees for their continued dedication, hard work and resilience, and look forward to all that lies ahead for Trinseo.”
The restructuring will be funded by a fully committed ~$158 million debtor-in-possession financing, as well as exit financing. Pursuant to the terms of the previously announced RSA, existing lenders are expected to receive nearly 100% of the equity of the reorganized Company. All holders of general unsecured claims, including trade creditors, vendors and suppliers, are expected to be unimpaired.
The Company also announced a new $150 million non-recourse revolving credit facility collateralized by Company trade receivables, which replaces its existing financing facility of the same size.
As part of the chapter 11 process, the Company has filed customary motions to allow Trinseo to maintain its normal operations, including an All-Trade Motion to pay vendors and suppliers for goods and services provided on or after the filing date under normal terms, ensuring they are unimpaired in the process. In addition, the Company has filed motions pertaining to customer and employee compensation and benefits programs to ensure there will be no impact on customers and employees.
Note: This story has not been edited by The Polymerupdate Editorial team and is auto-generated from a syndicated feed.
