Venator Materials plan, disclosure statement hearing now July 19

By Sarah Lizee

Olympia, Wash., July 12 – Venator Materials plc’s hearing on confirmation of its pre-packaged Chapter 11 plan and final approval of the related disclosure statement was moved to July 19 from July 17, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company filed bankruptcy on May 14 to implement a recapitalization plan reached with a majority of its lenders and noteholders.

The company said the agreement will equitize nearly all of its funded debt, strengthen its balance sheet and facilitate an infusion of new capital.

The company has roughly $1.14 billion of prepetition debt, including $190 million under an asset-based lending facility with J.P. Morgan Chase Bank, NA as agent, $354 million under a term loan facility with Acquiom Agency Services LLC and Seaport Loan Products LLC as agents, and $225 million in senior secured notes and $375 million in senior notes with Wilmington Trust, NA as trustee.

The restructuring support agreement provides for the following terms:

• The refinancing of all of the debt owed under the company’s asset-backed revolving credit facility;

• The equitization of the rest of the company’s funded debt, including the senior secured term loan facility, the 9½% senior secured notes due 2025 and the 5¾% senior notes due 2025;

• A commitment from the consenting creditors to backstop, if necessary, (i) an equity rights offering and the issuance of ordinary shares by the company to the consenting creditors on the plan effective date, and/or (ii) an exit first-lien term loan facility to be entered into on the plan effective date and on terms to be agreed;

• Payment in full of all trade claims;

• 100% recovery to holders of other secured claims, other priority claims and general unsecured claims;

• Establishment of a customary management equity incentive plan after the effective date; and

• No recovery for existing equity interests.

The Woodlands, Tex.-based manufacturer and marketer of chemical products filed bankruptcy on May 14 under Chapter 11 case number 23-90301.

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