HOUSTON—Butadiene and C4 products supplier TPC Group has completed its Chapter 11 reorganization plan, which was launched earlier in the year to eliminate a large chunk of the company's secured debts.
In a Dec. 16 statement, the supplier said it has emerged from the process as "a stronger, more competitive business" and has eliminated $950 million of its $1.3 billion debts.
In addition, the process covered contingent litigation liabilities arising from an explosion at the company's Port Neches facility in November 2019, TPC added.
"Today marks a new chapter for our Company," said TPC Group President & CEO, Ed Dineen. "We are pleased to have emerged from Chapter 11 protection with improved financial and operational flexibility. I want to thank our TPC Group employees for their unwavering support throughout this process—their hard work, commitment and dedication is evident and appreciated. The future is bright for TPC Group. We look forward to continuing to produce the highest quality products and being a dependable service provider and a leader in the petrochemicals industry for many years to come."
Following the reorganization, TPC said it has achieved "an industry-leading balance sheet" with "a definitive and consensual resolution of legacy liabilities."
Furthermore, the company said its commercial contracts and relationships had been strengthened while liquidity was strong.
TPC Group and certain of its subsidiaries filed for Chapter 11 bankruptcy protection in June to enhance the liquidity profile of the company.
According to chairman, president and CEO Edward Dineen, events including the COVID-19 pandemic, supply-chain issues, commodity-price rises, higher energy costs, the 2021 winter storm and the explosion at Port Neches had caused financial strain for the company in recent years.
