COLUMBUS, Ohio—Hexion Inc. completed de-leveraging its balance sheet and has emerged from Chapter 11 bankruptcy protection.
The producer of thermoset resins reduced its debt by more than $2 billion and received an infusion of $300 million in equity capital through a rights offering, according to a company news release. It also raised about $2 billion in exit financing.
Hexion's global operations continued uninterrupted during the process, which was supervised by the bankruptcy court. The company said the de-leveraging plan provided payment in full for the company's trade creditors.
Completing the plan allows Hexion to move forward with less debt and greater financial flexibility, CEO and President Craig Rogerson said in a statement. The company will build its value-creating platform by accelerating new product development. Hexion's growth strategy will be driven by product investments through research and development and strategic partnerships, capitalizing on its global footprint.
"Going forward, we are well-positioned to take advantage of our operational momentum," Rogerson said.
Hexion filed for Chapter 11 bankruptcy April 1 and entered into a restructuring agreement for all U.S. subsidiaries and one non-operating entity in Nova Scotia. The company's voluntary petition filing did not include other operations outside the U.S.
In the process, the court granted Hexion interim approval to access up to $600 million of its $700 million in debtor-in-possession financing to help meet operational and restructuring needs.
Latham & Watkins L.L.P. is serving as legal counsel during the bankruptcy process, Hexion said. Moelis & Co. L.L.C. served as financial adviser and AlixPartners L.L.P. served as restructuring adviser.
Its major shareholder is Apollo Global Management L.L.C.
Columbus-based Hexion produces resins and products at 27 manufacturing and research and development facilities in the U.S., serving the automotive, building and construction, oil and gas, and wind energy markets, according to its website. It also supports applications in tire and rubber goods manufacturing, with tackifiers, vulcanizing agents, reinforcing resins and versatic acids. The products are meant to improve rolling resistance, grip and noise.
The firm operates about 60 industrial facilities and 4,000 global employees.