HOUSTON—TPC Group L.L.C. creditors have agreed to forbear on the company's failure to make Feb. 2 and May 1 interest payments on senior secured notes, TPC, previously known as Texas Petrochemicals, said in a May 23 news release.
The agreement stemmed from ongoing talks with the "Ad Hoc Group," which represents about 90 percent and 80 percent of two series of TPC notes, and other commercial stakeholders.
The parties have agreed to extend the forbearance agreement through June 1, allowing TPC to continue discussions to strengthen its capital structure and business position.
TPC said it will "continue to operate as usual, maintaining its vital focus on EHSS performance, reliable and safe operations" and supply products and services.
The group entered into forbearance agreement with the Ad Hoc Group in February after failing to make $53 million in total interest payments due on the secured notes on Feb. 1.
TPC further extended the agreement in April to allow additional period to continue to strengthen the company's capital structure.
The Houston-based group is a major independent producer of C4 hydrocarbons, including butadiene monomers for the rubber industry.
