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Tronox Agrees With Key Creditor Stakeholders On Amended Reorganization Plan

(RTTNews) - Specialty chemicals company Tronox Inc. (TRXAQ.PK,TRXBQ.PK), which filed for Chapter 11 bankruptcy protection in January 2009, Monday said that it has agreed with all its key creditor stakeholders on the framework for an amended plan of reorganization. This plan will settle the Oklahoma City-based company's environmental and tort liabilities and allow it to emerge from chapter 11 in the coming months.

The company, which produces titanium dioxide pigment and other specialty chemicals used in the manufacturing of paints, plastics, paper and batteries, said that on August 27, it filed a motion with the U.S. Bankruptcy Court for the Southern District of New York to enter into a plan support agreement and an equity commitment deal. This will provide the company with the financing required to make the settlement payments contemplated by the plan.

Tronox noted that, pursuant to the plan support and equity commitment agreements filed with the Court, it will work with its key stakeholders to file and seek confirmation of the plan on the timeline set forth in the agreements. It requires Tronox to emerge from chapter 11 by year end. The terms of the plan will modify and supersede the plan of reorganization filed on July 7.

The Bankruptcy Court will consider Tronox's motion to approve the plan support agreement and the equity commitment agreement at a hearing on September 16.

Under the plan, Tronox will reorganize its existing operating businesses, including its facilities at Oklahoma City, Oklahoma; Hamilton, Mississippi; Henderson, Nevada; Botlek, the Netherlands and Kwinana, Australia. The company will also rely on a combination of debt and new money equity investments to meet its working capital needs and fund distributions required by the plan.

Further, the company said that government claims related to its environmental liabilities at legacy sites will be settled through the creation of certain environmental response trusts and a litigation trust. Certain trusts will also be created by the plan for tort claimants, who have asserted claims related to potential asbestos, benzene, creosote and other liabilities.

TRXAQ.PK closed Friday's trading at $0.28.

TRXBQ.PK ended at $0.2890 on Friday.