Transactions

Chemtura Corporation’s Chapter 11 Reorganization

Date Announced:
11/09/2010

client:
Ad Hoc Committee of Bondholders of Chemtura Corporation

Status:
Closed – 11/2010

Value:
$2.7 billion Read the case study

Financial advisor to the Ad Hoc Committee of Bondholders of Chemtura Corporation on its $2.7 billion Chapter 11 Reorganization

On November 10, 2010, Chemtura Corporation (“Chemtura,” NYSE: CHMT), a global manufacturer of specialty chemicals, successfully emerged from Chapter 11 bankruptcy with indebtedness reduced from $1.3 billion prepetition to $750 million post-emergence. The court confirmed a Plan of Reorganization which resulted in bondholders receiving a 100% recovery, including post-petition interest and Make-Whole/No-Call damage claims, through the issuance of cash and 95% of the reorganized company’s equity to all unsecured creditors. The Plan of Reorganization was the result of intensive negotiations with the Debtors and was confirmed over the strong objection of certain other stakeholders in a highly litigated confirmation hearing. Moelis & Company represented the Ad Hoc Committee of Bondholders, which collectively owned an overwhelming majority of the unsecured bonds.


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