US Tronox shareholders propose competing plan to exit bankruptcy

03 September 2010 15:58  [Source: ICIS news]

HOUSTON (ICIS)--A group representing Tronox shareholders filed their own reorganisation plan to get the US titanium dioxide (TiO2) producer out of bankruptcy protection.

The shareholder plan could serve as an alternative to the plan filed by Tronox earlier this year.

The group filed the plan on Thursday in the US bankruptcy court of the southern district of New York. Afterwards, Tronox shares reached 33 cents on Friday in over-the-counter trading, up 22%.

The next step for the shareholders is to have the court approve the disclosure statement. Creditors use the information from the disclosure statement to decide on whether they should approve or reject the reorganisation plan.

If creditors approve the plan, then the bankruptcy court would hold a hearing to confirm the plan. If confirmed, Tronox would emerge from bankruptcy protection.

Tronox had filed its reorganisation plan earlier this year. The company has since filed amendments to the plan.

The company filed for Chapter 11 bankruptcy protection in 2009.

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By: Al Greenwood
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