Sterling Chem nears end of bankruptcy reorganisation

14 October 2002 23:02  [Source: ICIS news]

HOUSTON (CNI)--Sterling Chemicals Holdings said Monday it has received court approval for disclosure of its final plan for reorganisation under US bankruptcy law and expects to emerge from bankruptcy by year end.

Houston-based Sterling said creditor voting on the final reorganisation plan will be completed by 13 November and the bankruptcy court's confirmation hearing on the plan is scheduled for 20 November.

The plan provides for a $60m (Euro60.6m) infusion of new equity in Sterling by Resurgence Asset Management under an investment agreement between the two firms.

David Elkins, president and chief executive of Sterling, said today in a statement: "This is another significant step in our financial reorganisation. While some challenges remain, we continue to work closely with all parties and we are on schedule to emerge from Chapter 11 [bankruptcy protection] by year end."

With US production facilities in Texas, Florida and Georgia and additional production capacity in Canada, Australia and Barbados, Sterling produces petrochemicals, acrylic fibres and pulp chemicals. Only the company's US facilities were part of Sterling's bankruptcy filing.

Resurgence Asset Management is a global private investment firm based in White Plains, New York.

By: Joe Kamalick
+1 713 525 2653

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