Houston — Butadiene and C4 products supplier TPC Group LLC and some of its subsidiaries have filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.
In a press release June 1, the Texas manufacturer said it had entered into a restructuring support agreement (RSA) with lenders to eliminate $950 million of its $1.3 billion secured debt and resolve all tort liabilities arising from the 2019 Port Neches facility fire.
"The transactions contemplated by the RSA, once consummated, will result in the company emerging from bankruptcy with a significantly enhanced liquidity profile," said TPC.
According to Chairman, President and CEO Edward Dineen, a series of events including the COVID-19 pandemic, supply chain issues, commodity price increases, higher energy costs, the 2021 Storm Uri and the explosion at Port Neches in November 2019 have caused financial strain for the company in recent years.
The company official said he was confident that through the chapter 11 process, TPC would "bolster liquidity, substantially improve debt position, and definitively resolve the liabilities associated with the Port Neches facility incident."
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