Tronox lets shareholders file separate exit plan
A major chemical manufacturer said it will allow its shareholders to file a rival reorganization plan.
Tronox Inc. said that as it updates its own bankruptcy exit plan, it will also coordinate meetings on the shareholders' proposal.
According to a report from Businessweek, Tronox won't object to an equity committee's plan "to avoid the time and expense to the debtor's estate," its lawyers wrote. The plan, which no one from the company itself has seen, has to be filed before September 2.
Tronox's new proposal to finance its bankruptcy exit would involve $170 million being raised through a stock offering, and holders of more than 58 percent of its unsecured notes agreed to buy anything not sold, the report said.
The company has been in bankruptcy since January 2009, but recently reached an agreement to increase its financing by $90 million, the report noted. In all, Tronox will have $468 million in debt upon emerging from Chapter 11.
A report in the Oklahoman, an Oklahoma City newspaper, said that Tronox blamed its former parent company, Kerr-McGee, for saddling it with environmental liabilities unrelated to its chemical business.
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