30 August 2010 15:32 [Source: ICIS news]
The plan would settle the company’s legacy environmental and tort liabilities and allow Tronox to emerge from US chapter 11 bankruptcy protection in coming months, it said.
The US Department of Justice approved the plan, Tronox said.
For its claims related to environmental liabilities, the government would receive $270m (€211m) in cash, 88% of Tronox’ interest in pending Anadarko litigation, certain Nevada property assets and other insurance and financial assurance assets worth at least $50m, Tronox said.
Tronox was suing Anadarko to pay for its environmental liabilities. Overall, environmental claims against the company were estimated at $1.4bn-$5.2bn.
Going forward, Tronox said it would reorganise around its existing operating businesses and achieve working capital through several steps. Those steps include a total funded first lien debt of up to $468m and the proceeds of a $170m rights offering open to unsecured creditors, the company said.
Also, unsecured note holders would invest $15m in exchange for convertible preferred stock with a liquidation preference.
A hearing to formally approve the agreement is to be heard by a US bankruptcy court on 16 September.
Tronox initially filed for bankruptcy in January 2009.
Tronox is the world’s fifth-largest producer of titanium dioxide with around 9% of global market share, according to the company. It has annual global production capacity of 425,000 tonnes. In 2009, sales totaled around $1.1bn.
($1 = €0.78)
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