Sector News

Reichhold files for bankruptcy, may sell US business to bondholders

October 1, 2014
Chemical Value Chain
Coatings and composites maker Reichhold Industries (Durham, NC) today filed for Chapter 11 bankruptcy protection in US Bankruptcy Court in the District of Delaware. As part of the filing, Reichhold will pursue a sale of its US business, with the company’s bondholders serving as a “stalking-horse” bidder, establishing a floor on bidding for Reichhold’s assets.
 
Bondholders will also provide Reichhold with $130 million in financing to continue operations, including $100 million in debtor-in-possession (DIP) financing, which must be approved by the court. Some of the financing will also be used to repay certain secured financing facilities in North America and Europe. Reichhold has as much as $1 billion in debt and $500 million assets, reports say.
 
In July, credit ratings agency Standard & Poor’s (S&P; New York) downgraded Reichhold and warned of a possible default. S&P said at the time that it did not expect Reichhold to generate enough cash to meet its debt obligations without an infusion of cash from an outside party.
 
Other details of the sale process for Reichhold’s US business were not immediately available. The company’s operations outside the US were not affected by the Chapter 11 filing. Reichhold will continue operating its business as usual during the Chapter 11 process, and the process has the “full support” of the company’s bondholders, says Reichhold chairman and CEO John Gaither.
 
By Vincent Valk
 

comments closed

Related News

October 10, 2021

Sika Demonstrates Proof of Concept of Concrete Recycling – Strategic Targets for 2023 Confirmed at Capital Markets Day in Zurich

Chemical Value Chain

At the Sika Capital Markets Day 2021 being held in Zurich, CEO Thomas Hasler confirms the strategic targets 2023. Under the motto: “Sika as Enabler for a Sustainable Construction Industry”, members of Group Management and Sika experts demonstrate the groundbreaking Sika concrete recycling process at a test facility in Zurich.

October 10, 2021

AR Packaging launches high-barrier fiber-based tray for chilled food recyclability

Chemical Value Chain

Sweden-based AR Packaging is releasing a recyclable fiber-based tray for high-barrier applications called TrayLite. The solution provides an alternative to full plastic barrier trays, reducing plastic content by 85%, for the modified atmosphere packaging of ready meals and other chilled foods.

October 10, 2021

Neste to sell base oils business to Chevron

Chemical Value Chain

The agreement covers a combination of share and asset deals forming Neste’s entire global base oils business. As part of the divestment, the parties have also agreed on a long-term offtake for Neste’s base oils supply from Porvoo, Finland.

Send this to a friend