“Pre-arranged comprehensive financial restructuring” to resolve liabilities resulting from the 2019 Port Neches fire
Houston, Texas – U.S. supplier of butadiene and C4 products, TPC Group, and certain of its subsidiaries have filed for Chapter 11 bankruptcy with the U.S. Bankruptcy Court for the District of Delaware.
In a June 1 statement, the Texas-based manufacturer said it had entered into a restructuring support agreement (RSA) with lenders to eliminate $950 million (€884 million) of its secured debt of 1, $3 billion and resolve all tort liabilities arising from the 2019 Port Neches facility. Fire.
“The transactions contemplated by the RSA, when completed, will allow the company to emerge from bankruptcy with a significantly improved liquidity profile,” TPC said.
According to Chairman, President and CEO Edward Dineen, a series of events including the Covid-19 pandemic, supply chain issues, commodity price increases, higher energy costs, the 2021 Storm Uri and the explosion in Port Neches in November 2019 caused financial problems. pressure for the company in recent years.
The company executive said he was confident that through the Chapter 11 process, TPC would “strengthen liquidity, significantly improve the debt position and permanently resolve liabilities associated with the Port Facility incident. Neches”.
