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

May 21, 2022

Sika opens new manufacturing plant in Bolivia 

Chemical Value Chain

Sika AG (Baar, Switzerland) has opened a new plant in Santa Cruz de la Sierra, thus doubling its production capacity for mortar and concrete admixtures in Bolivia. With this new facility in one of the country’s main industrial agglomerations, Sika is positioning itself for continued growth in the dynamic Bolivian construction market.

May 21, 2022

Chevron increases renewable fuel market share with REG acquisition

Chemical Value Chain

Chevron Corporation (NYSE: CVX) and Renewable Energy Group, Inc. (NASDAQ: REGI) (REG) announced on Monday a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at $3.15 billion, or $61.50 per share.

May 21, 2022

Lotte Chemical to invest $8 bn on hydrogen energy, battery materials by 2030

Chemical Value Chain

Lotte Chemical Corp. will invest 10 trillion won ($8 billion) on hydrogen and battery materials through 2030 to achieve annual revenue of 50 trillion won and carbon neutrality. The Korean chemical producer on Thursday unveiled its new corporate vision outlining key corporate strategies with focus on growth through hydrogen energy and battery materials businesses.