NEW YORK, Jan 11 (Reuters) - The U.S. operations of chemical company Tronox Inc are set to file for Chapter 11 bankruptcy protection in New York as early as Sunday night, according to a source familiar with the situation.
The source spoke on the condition of anonymity since the source was not authorized to speak on the matter. The company was not available to comment.
The Oklahoma City-based producer of titanium dioxide pigment used in paint, plastics and paper is expected to file for bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan, according to the source.
Tronox expects to receive about $125 million in debtor-in-possession financing led Credit Suisse and others, the source said. Companies use DIP financing to help them fund operations while they restructure debt and operations while under bankruptcy protection.
Tronox, which was spun off from Kerr-McGee in 2006 does about $1.4 billion in annual sales and is the third-largest global producer of titanium dioxide, behind industry leader E.I. DuPont de Nemours & Co and Millennium Inorganic Chemicals, according to Fitch Ratings.
In a Nov. 7 filing with the Securities and Exchange Commission, the company had said it may need to seek relief from creditors under a Chapter 11 bankruptcy filing if other options including land sales and development opportunities were unsuccessful.
Since August, all three major credit rating agencies have downgraded the company's debt.
ONLY U.S.
Only the company's U.S. entities are planning to file for bankruptcy protection, said the source. Manufacturing sites located in Europe and other locations will not be included, said the source.
The company, which has struggled to pay heavy environmental costs inherited from its spin-off, is expected to continue operations as usual while under Chapter 11 protection from creditors, said the source.
Shares of Tronox, which trade on the Pink Sheets, closed at 5.5 cents on Friday.
(Reporting by Chelsea Emery; Editing by Bernard Orr) Keywords: TRONOX/BANKRUPTCY (chelsea.emery@thomsonreuters.com; +1 646 223 6000; Reuters Messaging: chelsea.emery.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The source spoke on the condition of anonymity since the source was not authorized to speak on the matter. The company was not available to comment.
The Oklahoma City-based producer of titanium dioxide pigment used in paint, plastics and paper is expected to file for bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan, according to the source.
Tronox expects to receive about $125 million in debtor-in-possession financing led Credit Suisse and others, the source said. Companies use DIP financing to help them fund operations while they restructure debt and operations while under bankruptcy protection.
Tronox, which was spun off from Kerr-McGee in 2006 does about $1.4 billion in annual sales and is the third-largest global producer of titanium dioxide, behind industry leader E.I. DuPont de Nemours & Co and Millennium Inorganic Chemicals, according to Fitch Ratings.
In a Nov. 7 filing with the Securities and Exchange Commission, the company had said it may need to seek relief from creditors under a Chapter 11 bankruptcy filing if other options including land sales and development opportunities were unsuccessful.
Since August, all three major credit rating agencies have downgraded the company's debt.
ONLY U.S.
Only the company's U.S. entities are planning to file for bankruptcy protection, said the source. Manufacturing sites located in Europe and other locations will not be included, said the source.
The company, which has struggled to pay heavy environmental costs inherited from its spin-off, is expected to continue operations as usual while under Chapter 11 protection from creditors, said the source.
Shares of Tronox, which trade on the Pink Sheets, closed at 5.5 cents on Friday.
(Reporting by Chelsea Emery; Editing by Bernard Orr) Keywords: TRONOX/BANKRUPTCY (chelsea.emery@thomsonreuters.com; +1 646 223 6000; Reuters Messaging: chelsea.emery.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.