Chemicals manufacturer TPC Group Inc. has filed for bankruptcy, blaming a combination of factors including thousands of lawsuits and claims arising from a 2019 plant explosion, WSJ Pro Bankruptcy reported. The Houston-based company, which is owned by private-equity firms First Reserve Corp. and SK Capital Partners LP, said on Wednesday it has reached a restructuring agreement with overwhelming support from two bondholder groups that collectively hold more than $1.1 billion of its secured notes due in 2024. Fortress Investment Group LLC, Monarch Alternative Capital LP and Strategic Value Partners LLC are among creditors supporting the reorganization. TPC said the debt restructuring will help cut $950 million of its roughly $1.3 billion in secured debt from its balance sheet. TPC, whose products are used in synthetic rubber, fuels, lubricants and plastics, had missed an interest payment earlier in the year. The creditors had provided the company with additional liquidity and agreed to exchange their debt for new secured notes due in 2024. Edward Dineen, chairman and chief executive officer, said the bankruptcy is expected to resolve all liabilities arising from the explosion in November 2019. Residents and businesses have been eligible to claim compensation for property damages caused by the explosion, according to the company’s website. Under that claims program, TPC has roughly $15 million in unpaid property damage settlement amounts.
