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

January 29, 2023

Dow and 3M cut thousands of jobs

Chemical Value Chain

3M and Dow have announced they are cutting thousands of roles from their global workforces in response to economic pressures. Dow has said it will cut 2,000 jobs across its global workforce (around 5%) in a bid to save US$1bn in 2023. The company says it will also cut costs by shutting down “select assets”, though it did not note where it would halt operations.

January 29, 2023

Sweden discovers Europe’s largest rare earths deposit

Chemical Value Chain

Sweden’s state mining firm has discovered what could be Europe’s largest rare earths deposit, and says it could help the bloc reduce its reliance on imports of minerals needed to manufacture clean technologies and meet climate targets.

January 29, 2023

Avantium to supply Henkel with plant-based FDCA

Chemical Value Chain

Henkel and Avantium have been partners since 2019, when Henkel joined the PEFerence consortium. This consortium of partners, coordinated by Avantium, aims to establish an innovative supply chain for FDCA and PEF (polyethylene furanoate).

How can we help you?

We're easy to reach