MOSCOW (MRC) -- A succession of accidents and disasters led US-based butadiene (BD) producer TPC Group to file for bankruptcy protection under Chapter 11, said Reuters.
Under Chapter 11, TPC Group will be protected from creditor lawsuits while it negotiates with creditors to restructure its debt. A key bloc of creditors has already entered a restructuring support agreement with TPC Group.
This group of creditors hold the following: 88% of TPC's USD205.5m outstanding 10.875% secured notes due 2024.
78% of TPC's $930m outstanding 10.5% secured notes due 2024. The restructuring support agreement establishes a framework for TPC to restructure its debt and liabilities, the company said.
Based on the agreement, TPC expects to eliminate more than USD950m of its USD1.3bn secured debt. In addition to the notes, TPC's secured debt includes an asset-based revolving loan worth USD105.5m.
The agreement should also resolve all of TPC's tort liabilities that arose from the explosion at its BD processing plant at Port Neches, Texas, in 2019. The company is negotiating a possible settlement that would address the Port Neches claims and get the support of the claimants for a reorganisation plan. That plan would allow TPC to emerge from bankruptcy protection.
It also could provide some recovery for those that hold general unsecured claims against TPC. Recovery could include USD5m in cash plus another $5m based on TPC's earnings projection for 2024. TPC does not have the support of all of its creditors.
In February, TPC announced that it had entered into a forbearance agreement with its lenders after failing to make interest payments.
As per MRC, The Polyolefins Company (TPC) has decided not to shut its low density polyethylene (LDPE) plant in Jurong Island, Singapore in mid-July 2021 for maintenance. The turnaround at this plant with a capacity of 260,000 mt/year of LDPE was initially expected to last for 45 days. TPC last conducted maintenance at its LDPE plant in Jurong Island in July 2018.
mrchub.com