About ShengdaTech, Inc.
ShengdaTech is engaged in the business of manufacturing, marketing and selling a variety of nano-precipitated calcium carbonate ("NPCC") products and coal-based chemicals for use in various applications. The Company converts limestone into NPCC using its proprietary technology. The unique chemical and physical attributes make NPCC a valuable ingredient in tires, paints, polyvinyl chloride ("PVC") building materials and other products. NPCC enhances the durability of many products by increased strength, heat resistance, and dimension stabilization. The Company is also engaged in the manufacture and sale of coal-based chemical products namely ammonium bicarbonate, liquid ammonia, melamine and methanol. The Company markets and sells its coal-based products mainly for chemical fertilizers and raw materials in the production of organic and inorganic chemical products, including formaldehyde and pesticides.
ShengdaTech Inc. (SDTH), a maker of nano precipitated calcium carbonate for the tire industry, sought bankruptcy protection on 8/19/2011 from creditors without citing a reason.
The company listed $295.4 million in assets and $180.9 million in debt as of Sept. 30 in Chapter 11 documents filed in U.S. Bankruptcy Court in Reno, Nevada.
Nano precipitated calcium carbonate or NPCC, is a chemical additive used in automotive and polyvinyl chloride products. ShengdaTech is a leading maker of NPCC in China, according to the company website. The company says it's the only supplier of NPCC products to the tire industry.
The Reno-based company said in court papers that unsecured creditors should expect to see a recovery from the reorganization.
The 20 largest unsecured creditors are owed about $167.5 million. Bank of New York Mellon Corp. (BK) is the biggest, acting as the indenture trustee for 6.5 percent noteholders owed about $130 million, court documents show. The bank is also listed as the trustee for 6 percent noteholders owed about $36.3 million. Fifteen of the 20 creditors are listed as owed an "unknown" amount.
The case is In re ShengdaTech Inc., 11-52649, U.S. Bankruptcy Court, District of Nevada
