Bankrupt East West sells SBR plant to US Lion Copolymer Services

02 June 2017 16:43 Source:ICIS News

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HOUSTON (ICIS)--Bankrupt US producer East West Copolymer sold its emulsion styrene butadiene rubber (e-SBR) plant Lion Copolymer Services, the financial advisor for the deal said on Friday.

Located in Baton Rouge, Louisiana, the plant can also make nitrile butadiene rubber (NBR), said Balmoral Advisors.

The sale was approved in US District Court, Middle Louisiana District.

Balmoral did not disclose the price of the sale. However, court documents said the sales price was $5.6m.

Had Lion failed to close on the sale, East West would have sold the plant to Galata Copolymers, which placed a $5.52m bid for the plant.

Galata Copolymers shares the same address as Galata Chemicals, which makes additives for polyvinyl chloride (PVC).

East West shuttered the plant in March and filed for bankruptcy protection under Chapter 11 in April. The case number of the proceedings is 17-10327.

At the time of the filing, the company estimated its real property was worth $10.20m and its personal property was worth $6.43m. Meanwhile, total liabilities totalled $49.88m.

East West had bought the plant from Lion Copolymer earlier this decade. East West itself was formed by a former CEO of Lion, Greg Nelson.

By Al Greenwood