Specialty chemical manufacturer Vertellus Specialties Inc. placed its U.S. operations under chapter 11 bankruptcy protection yesterday and said that its term loan lenders agreed to open the bidding at an auction for most of its business, Dow Jones Newswires reported. A court-supervised sale is the "most efficient means of creating a sustainable financial structure for our company," President and Chief Executive Richard Preziotti said in a release. The bankruptcy filing followed downgrades from ratings firms and a missed payment. Moody's cut Vertellus's credit rating in February, citing "significant earnings deterioration" in its agricultural section as well as a growing risk of environmental liabilities and increased competition from China. Vertellus has lined up $110 million in financing to maintain operations as usual while it goes through the sale process. The money is coming from existing lenders including Black Diamond Capital Management, BlackRock, BlueBay Asset Management, Brightwood Capital Advisors and TPG Special Situations Partners.
