OKLAHOMA CITY, Jan. 14 /PRNewswire-FirstCall/ -- Tronox Incorporated (Pink Sheets: TROXA, TROXB) announced today that it has received Court approval of several "first day" motions in its Chapter 11 reorganization, including authorization to use up to $100 million of its $125 million debtor-in-possession financing facility provided by its current bank group, led by Credit Suisse. The orders approved by Judge Allan Gropper of the U.S. Bankruptcy Court of the Southern District of New York will help ensure Tronox continues business as usual during its post filing restructuring period.
"I am pleased to report that the relief granted by the Court provides Tronox with ample liquidity to continue normal operations as we execute our business restructuring and address the company's debt structure, in particular its legacy liabilities," said Dennis Wanlass, Tronox chairman and chief executive officer. "Importantly, our customers and suppliers can rest assured that Tronox will have the liquidity it needs to continue to purchase goods and services and provide quality, on-time products and services as we move forward through this restructuring process."
Tronox and certain of its subsidiaries on January 12, 2009 filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to facilitate a business restructuring that will maximize value and strengthen operations. The filing does not include Tronox's operations outside of the U.S., which are based in Australia, Germany and the Netherlands.
The interim Debtor In Possession Financing Order grants Tronox interim authority to use up to $100 million in debtor-in-possession financing under its agreement with its lending group, led by Credit Suisse. Tronox will seek court permission for access to the entire $125 million financing facility at a hearing February 6, 2009 at 10:00 am.
Additional information on Tronox's Chapter 11 reorganization is available on the company's website, http://www.tronox.com/. Interested parties can also obtain information by calling the company's Restructuring Hotline at 1-866-775-5009 (toll-free within the U.S. and Canada) or 1-405-775-5000 (outside U.S. and Canada), or by sending an e-mail to
Forward-Looking Statements: Some information in this news release regarding the company's or management's intentions, beliefs or expectations, or that otherwise speak to future events, are "forward-looking statements" within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include those statements preceded by, followed by or that otherwise include the words "believes," "will," "expects," "anticipates," "intends," "estimates," "projects," "target," "budget," "goal," "plans," "objective," "outlook," "should," or similar words. Future results and developments discussed in these statements may be affected by numerous factors and risks, such as the accuracy of the assumptions that underlie the statements, the market value of Tronox's products, demand for consumer products for which Tronox's businesses supply raw materials, the market for raw materials that Tronox uses to produce TiO2, its inability to predict the prices of such raw materials, the financial resources of competitors, the market for debt and/or equity financing, changes in laws and regulations, the ability to respond to challenges in international markets, changes in currency exchange rates, political or economic conditions in areas where Tronox operates, trade and regulatory matters, general economic conditions, and other factors and risks identified in the Risk Factors Section of Tronox's Annual Report on Form 10-K for the year ended December 31, 2007, and subsequent Quarterly Reports on Form 10-Q, as filed with the U.S. Securities and Exchange Commission (SEC), and other SEC filings. Actual results and developments may differ materially from those expressed or implied in this news release. The company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. Investors are urged to consider closely the disclosures and risk factors in Tronox's Annual Report on Form 10-K for the year ended December 31, 2007, available on Tronox's website, http://www.tronox.com/. This also can be obtained from the SEC by calling 1-800-SEC-0330.
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