18 November 2010 07:34 [Source: ICIS news]
HOUSTON (ICIS)--US titanium dioxide (TiO2) producer Tronox said it expects to emerge from bankruptcy in upcoming weeks after a US court on Wednesday confirmed its reorganisation plan.
The plan would become effective after the court entered a written order and other conditions of the plan had been satisfied, said Oklahoma City-based Tronox.
"We will emerge from the chapter 11 process well-positioned to compete in the titanium dioxide and specialty chemical industries, having eliminated our significant environmental and other legacy liabilities," said Tronox chief executive Dennis Wanlass.
Tronox, which filed for bankruptcy protection in January 2009, said it would reorganise around its existing businesses, its facilities at Oklahoma City, Oklahoma; Hamilton, Mississippi; Henderson, Nevada; Botlek, The Netherlands; and Kwinana, Australia.
The company would use loans of no more than $470m (€348m) and the proceeds of a $185m rights offering, it said.
Tronox said $270m would be paid to settle environmental claims filed against it and it would give environmental trusts the right to 88% of the proceeds from its litigation against Anadarko Petroleum. Tort claimants in environmental cases would receive $12.5m.
Tronox had sued Anadarko Petroleum and former parent company Kerr-McGee, accusing them of saddling it with more than 70 years-worth of environmental liabilities while misleading investors and creditors about the magnitude of those costs. Kerr-McGee was sold to Anadarko in 2006 after Tronox was spun off in March 2006.
Tronox won the support of a credit group in early November.
($1 = €0.74)
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