Tronox granted approval of $415 million stalking horse bid

By Alice Popovici

New York, Sept. 16 - Tronox, Inc. received approval of an agreement to sell substantially all of its assets to Huntsman Corp. for a proposed $415 million during a Wednesday hearing with the U.S. Bankruptcy Court for the Southern District of New York, according to a source familiar with the case.

The court also approved a breakup fee of $12.45 million, to be paid to Huntsman if the company chooses another bidder at the auction.

During the hearing, attorneys for the creditors committee objected to the breakup fee, arguing that Huntsman's bid is too low and that there will be ample competition for the assets at the auction.

Attorneys for Tronox insisted that the breakup fee is needed to ensure Huntsman will not walk away from the agreement. An attorney for Huntsman said that the company has already started to secure regulatory permissions for the sale, and should be compensated for its efforts, should Tronox choose another buyer.

Tronox, an Oklahoma City-based producer and marketer of titanium dioxide pigment, filed for bankruptcy on Jan. 12, 2009 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 09-10156.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.