Chemtura Corporation and its 26 US affiliates have filed for Chapter 11 bankruptcy protection. According to Craig A. Rogerson, president and CEO of Chemtura, the decline in order volumes due to the global economic recession significantly decreased Chemtura’s liquidity and cash flow, prompting the decision.
Chemtura, which filed in the U.S. Bankruptcy Court for the Southern District of New York, says the bankruptcy filing is designed to help the company complete a financial restructuring. “Despite our efforts to increase liquidity, including through the potential sale of a business, our reduced liquidity position, combined with the anticipated expiration of our bank waiver, led us to determine that a court-supervised restructuring was the best course of action,” said Chemtura Chairman, President and Chief Executive Craig A. Rogerson in a statement.
The firm’s non-U.S. subsidiaries are not included in the filing, which was made in the U.S. Bankruptcy Court for the Southern District of New York.
The restructuring is being handled through Kurtzman Carson Consultants, which has details on the restructuring program here.