MIDDLEBURY, Conn., (March 19, 2009)—Chemtura Corp. and its 26 U.S. affiliates have filed for Chapter 11 bankruptcy protection.
The decline in order volumes because of the global economic recession significantly decreased Chemtura's liquidity and cash flow, according to Craig A. Rogerson, the firm's president and CEO.
“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,” Rogerson said in a news release.
The company said it has received a commitment for up to $400 million in debtor-in-possession financing from Citibank, N.A., as administrative agent. Pending court approval, that financing and cash from ongoing operations will be used to support the business during the Chapter 11 process.
The firm's non-U.S. subsidiaries are not included in the filing, which was made in the U.S. Bankruptcy Court for the Southern District of New York.
Chemtura produces rubber chemicals, polyurethanes, flame retardants and a wide variety of other chemical-related products.