Venator Materials PLC, the former pigments and additives division of The Woodlands, Texas-based Huntsman Corp., has filed for bankruptcy protection in Houston along with 23 affiliates, the Houston Business Journal reported. In the main chapter 11 petition filed May 14, the U.K.-based company listed total assets of nearly $1.42 billion and total debts of more than $1.53 billion. The petitions were filed in the U.S. Bankruptcy Court for the Southern District of Texas, which is well known for handling large corporate restructurings. However, Venator expects to emerge from bankruptcy quickly. On May 15, the manufacturer and marketer of chemical products said an "overwhelming majority of its lenders and noteholders" had agreed to the terms of a comprehensive recapitalization plan, which would be implemented through an expedited prepackaged chapter 11 process. Venator's plan already had support from "the holders of 94% in principal of the obligations under the Term Loan Facility, holders of 98% in principal of the obligations under the Senior Secured Notes, and holders of 92% in principal of the obligations under the Senior Unsecured Notes and rolls-up all of the obligations under the (asset-based lending facility)," CFO Kurt Ogden said in a declaration filed May 15. Venator plans to exchange nearly all of the company's funded debt for equity. The New York Stock Exchange delisted Venator, as expected, and the company's shares are trading on the over-the-counter marketplace during the chapter 11 process. The shares are expected to be canceled as part of the restructuring. On May 16, Judge David R. Jones approved setting June 15 as the deadline to vote on the plan, June 20 as the deadline to file objections and June 26 as the date for a hearing on the confirmation of the plan.
