Vertellus Specialties Receives Approval Of First Day Motions Ensuring Its Ability To Operate As Usual And Uphold Its Financial Obligations Throughout Sale Process
Published: Jun 02, 2016
INDIANAPOLIS, June 1, 2016 /PRNewswire/ -- Vertellus Specialties Inc. ("Vertellus" or "the Company"), a global manufacturer of fine and specialty chemicals, today announced that the U.S. Bankruptcy Court for the District of Delaware has approved all of the First Day Motions related to its voluntary Chapter 11 process initiated May 31, 2016.
These approvals will allow Vertellus to operate its business as usual with full authority to:
- Access $110 million in new debtor-in-possession financing from its existing term loan lenders, which combined with normal operating cash flow, will allow the Company to maintain its normal course operations and meet its ongoing financial commitments throughout the sale process.
- Pay employees as usual, reimburse approved business expenses, and continue existing medical benefits, vacation time, sick leave and holidays, and 401(k) match programs without interruption.
- Maintain customer programs and sales incentives.
"Today's hearing is an important step in the Chapter 11 process, which will ensure we are able to uphold our commitments to our employees, customers and suppliers as we move forward to become a stronger company," said Rich Preziotti, President & CEO of Vertellus. "We appreciate the Court's careful consideration of our proposals as well as the ongoing support of our lenders, and look forward to efficiently completing this process as an even stronger employer, innovator and business partner."
Vertellus previously announced May 31, 2016, that it had reached an agreement through which its existing term loan lenders would purchase substantially all of Vertellus Specialties Inc.'s U.S. and international assets. This agreement would provide long-term financial stability and allow the Company to implement its go-forward business strategy under new ownership.
To achieve its financial objectives and facilitate the sale, Vertellus Specialties Inc., its corporate parent Vertellus Specialties Holding Corp., and its U.S.-based subsidiaries filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The filings do not include Vertellus Specialties Inc.'s international entities in Belgium, the U.K., India and China, although these entities are included in the sale process.
Additional information can be found at www.VSRestructuring.com.
Vertellus is advised in this transaction by DLA Piper, Jefferies and FTI Consulting. The lenders are advised in this transaction by Milbank, Tweed and Moelis & Company.
Vertellus is a global specialty chemicals company focused on the manufacture of ingredients used in pharmaceuticals, personal care, nutrition, agriculture, and a host of other market areas affected by trends favoring "green" technologies and chemistries. Vertellus is the #1 global producer of pyridine and picolines, specialty pyridine derivatives, DEET, castor oil derivatives and systems, and a world leader in vitamin B3, citrate polymer additives and systems as well as a leader in custom manufacturing of agriculture and pharma intermediates and actives. Vertellus benefits from a technically advanced global manufacturing base and has over 1,000 employees. Vertellus is headquartered in Indianapolis, Indiana.
This press release (including information incorporated or deemed incorporated by reference herein) contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projections as well as the current beliefs and assumptions of the Company's management. Words such as "guidance", "outlook", "believes", "expects", "appears", "may", "will", "should", "intend", "target", "projects", "estimates", "plans", "forecast", "is likely to", "anticipates", or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact and other estimates, projections, future trends and the outcome of events that have not yet occurred referenced in this press release, is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements.
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SOURCE Vertellus Specialties Inc.