15 October 2010 16:42 [Source: ICIS news]
HOUSTON (ICIS)--Tronox is seeking court approval for new financing that could give it seven more weeks to complete its reorganisation plan, the bankrupt US titanium dioxide (TiO2) producer said in court documents available on Friday.
If approved, Tronox’s existing $425m (€302m) debtor-in-possession (DIP) and exit financing facility would be replaced with another $425m financing plan with more favourable terms.
For example, the interest rate on the new financing is about 2% less than the non-default rate of the existing facility, Tronox said. As a result, the new plan would save Tronox $1.45m/month in interest expenses, it said.
Also, the maturity date of the new facility could be as late as 15 February 2011, a seven-week extension from the 24 December maturity date of the existing facility.
Meanwhile, the new facility would also make about $90m available in exit financing, which Tronox would use to pay its legacy, environmental and tort creditors, it said.
Goldman Sachs Lending Partners would act as the agent for the latest financing deal, according to the filing.
The company did not immediately respond to a request for further comment.
Tronox initially filed for bankruptcy in January 2009, less than three years after its spin-off from Kerr-McGee.
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 totalled around $1.1bn.
($1 = €0.71)
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