Trinseo PLC (Wayne, Pennsylvania), a producer of engineering resins, has struck a deal with its lenders for a comprehensive restructuring aimed at reducing the company’s debt by $2 billion, reducing its annual interest expense by $140 million and allowing it to operate from a positive free cash flow position. Under the terms of the agreed Restructuring Support Agreement, Trinseo will finalize a plan of reorganization and file a chapter 11 petition with the US Bankruptcy Court for the Southern District of Texas “in the coming weeks,” the company said May 13.
No concessions from employees, customers, vendors or suppliers are part of the agreement, said Trinseo, which expects to continue conducting business uninterrupted both in the US and globally.
The restructuring will be implemented through a pre-packaged chapter 11 plan of reorganization funded by fully committed debtor-in-possession financing of about $158 million, a $150 million accounts receivable facility and exit financing. Existing lenders will receive 100% of the reorganized company’s equity, while all holders of general unsecured claims, including trade creditors, vendors and suppliers, will be unimpaired, said Trinseo.
Trinseo has been struggling to pay down its debt, which totaled $2.8 billion at the end of the first quarter, for a debt-to-EBITDA ratio of 18.31, according to data from S&P Global Capital IQ. Cash from operations has been negative for the last two years — by $14 million in 2024, by $102 million in 2025 and by $233 million in the first quarter of 2026.
On March 19, the company missed the interest payments due on its 2028 term loan B and senior secured notes maturing in 2029, prompting S&P Global Ratings to downgrade Trinseo’s credit rating to D.
by Clay Boswell
Source: chemweek.com
Plastics recycling markets in the EU and UK remain under significant pressure, with weak demand due to unclarity in regulations and low-cost virgin imports making the sector commercially uninvestable without policy changes.
The acquisition of DOMO EM follows the completion of Lone Star’s acquisition of RadiciGroup, with its High Performance Polymers and Specialty Chemicals business areas. The DOMO EM and RadiciGroup businesses will be combined and will then benefit from a broad and complementary product portfolio.
Maximilian Peter will take over as Head of the Polymers division on May 1, 2026. The chemical engineer with a doctorate has been with the company since 2012. The previous head of the division, Peter Summo, will take over the management of the central Sales & Distribution division.
