Tronox negotiates environmental claim settlement, outlines plan funds

By Caroline Salls

Pittsburgh, Oct. 5 - Tronox Inc. is negotiating an environmental claims settlement, which, along with its amended plan of reorganization, equity commitment agreement and new plan support agreement, will allow the company to emerge from bankruptcy free of its significant environmental and tort liabilities, according to a presentation filed Tuesday with the Securities and Exchange Commission.

As previously reported, Tronox filed its amended plan on Sept. 1, and the disclosure statement was approved on Sept. 30.

The company's new plan support and equity commitment agreements were approved by the U.S. Bankruptcy Court for the Southern District of New York on Sept. 17.

According to the presentation, the cash needed to fund the amended plan will come from a new $125 million ABL revolving credit facility, a $425 million upsized debtor-in-possession-to-exit term loan and a $185 million rights offering open to all general unsecured creditors.

Tronox said the reorganized company will have $468.1 million in total funded debt, including $425 million in term loans and $43.1 million drawn under the ABL facility.

At emergence from bankruptcy, the company's equity will be 100% owned by holders of general unsecured claims.

The company's projections show it will have $191 million in EBITDAR at the end of 2010, $181 million in 2011, $158 million in 2012 and $157 million in 2013.

Meanwhile, Tronox projects $1.154 billion in net sales at the end of 2010, $1.231 billion for 2011, $1.248 billion for 2012 and $1.273 billion for 2013.

The company said it plans to distribute the information in the presentation to current and potential future lenders.

Tronox, an Oklahoma City-based producer and marketer of titanium dioxide pigment, filed for bankruptcy on Jan. 12, 2009. 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.