Venator Materials said Monday that it has reached an agreement with the overwhelming majority of its lenders and noteholders on the terms of a comprehensive recapitalization plan, which includes chapter 11 bankruptcy, MarketWatch.com reported. Venator shares were halted at 27 cents in premarket trading. The company said that the agreement will equitize nearly all of its funded debt, strengthen its balance sheet and help add an infusion of new capital. The recapitalization will be implemented through a prepackaged chapter 11 process in the U.S., and will be financed by a debtor-in-possession financing facility, which includes a commitment for $275 million in new-money financing from the company's supporting creditors. Following approval by the court, the DIP financing, together with cash on hand and cash generated from ongoing operations, is expected to provide substantial liquidity to support Venator throughout the recapitalization process and beyond. Venator said that its businesses are expected to continue to operate as normal for the duration of the process, and it expects to continue to pay wages and benefits to its global workforce, and to pay all trade partners in the ordinary course. Venator sees completing its chapter 11 process within two months, and expects to be delisted by the New York Stock Exchange. Its common shares will continue to trade in the over-the-counter marketplace throughout the duration of the chapter 11 process.
