Indianapolis-based Vertellus Specialties Inc. has cleared an early step in the Chapter 11 bankruptcy process. The chemical manufacturing company says, with the approval of all First Day Motions by a U.S. Bankruptcy Court, it will be able to maintain its "normal course operations."
Tuesday, the company announced an agreement with its term loan lenders to sell "substantially all" domestic and foreign assets. Though included in the sale, Vertellus’ entities in Belgium, the United Kingdom, India and China are not part of the Chapter 11 filing.
Vertellus also says the approval by the court in the District of Delaware will allow it to access $110 million in new debtor-in-possession financing from existing lenders. Combined with normal operating cash flow it says it will be able to meet financial obligations as it moves through the sale process. Employees will be paid and receive benefits and reimbursements as usual.
Chief Executive Officer Rich Preziotti calls it an important step that will "ensure we are able to uphold our commitments to our employees, customers and suppliers as we move forward to become a stronger company. We appreciate the Court’s careful consideration of our proposals as well as the ongoing support of our lenders, and look forward to efficiently completing this process as an even stronger employer, innovator and business partner."
The company says it has 1,000 employees worldwide. You can connect to more about the company’s restructuring by clicking here.
Last year, Vertellus acquired the Sodium Borohydride business from the Dow Chemical Co. Vertellus has 17 locations throughout the world and provides more than 750 types of specialty chemicals for agriculture, nutrition, fine chemicals, pharmaceutical and medical, personal care, plastics, coatings and industrial market customers.