20 March 2009 21:08 [Source: ICIS news]
HOUSTON (ICIS news)--The US Bankruptcy Court granted Chemtura approval to access up to $190m (€139m) of its $400m bankruptcy-financing package, the company said on Friday.
Such financing, also called debtor-in-possession (DIP) financing, funds the day-to-day operations of a company while it reorganises under bankruptcy protection.
The court also approved Chemtura's first-day motions, the company said. Companies typically file such motions shortly after they file for bankruptcy protection.
With the motions approved, Chemtura can pay outstanding employee wages and health benefits among other expenses, the company said.
Chemtura's US operations filed for bankruptcy protection on Wednesday, listing assets of $3.06bn and debts of $2.60bn.
The foreign subsidiaries of Chemtura remain solvent, and they are not covered by the bankruptcy filing.
Chemtura produces plastic additives and agrochemicals.
($1 = €0.73)
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