Tronox’s U.S. Operations File Chapter 11
New Tickers: TRXAQ and TRXBQ
• Continues Business as Usual
• Has Commitment for up to $125 million in DIP Financing
• Seeks Relief From Legacy Liabilities
Oklahoma City, January 12, 2009 – Tronox Incorporated (OTC: TROXA, TROXB) announced today that it and certain of the company’s subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filing does not include Tronox’s operations outside of the U.S., which are based in Australia, Germany and the Netherlands.
“After careful evaluation of all strategic alternatives, we have concluded that a Chapter 11 filing is the best way to address the company’s debt, in particular its legacy liabilities,” said Dennis Wanlass, Tronox chairman and chief executive officer. “We want to assure customers, suppliers and employees that our operations are continuing without interruption, and during the restructuring period, we will remain focused on continuing to provide customers with quality products and unsurpassed service.”
The company has taken steps to ensure the continued supply of goods and services to its customers, with a commitment for up to $125 million in new debtor-in-possession (DIP) financing from its existing lending group led by Credit Suisse.
The DIP financing provides Tronox with ample liquidity to continue operations as usual during the restructuring process. The company will use the financing to pay vendors for all goods and services provided after the filing date. Additionally, Tronox has requested court approval to continue to pay employees in the same manner as before the filing with no disruption, and expects the request to be granted as part of the court's "first day" orders. The decision to file was made to address legacy liabilities.
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(Subscription only) http://bankruptcy.law360.com/registrations/user_registration?article_id=93609&concurrency_check=false
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Tronox Files Fraudulent Conveyance Lawsuit Against Anadarko Petroleum Corporation and Kerr-Mcgee CorporationTronox Files Fraudulent Conveyance Lawsuit Against Anadarko Petroleum Corporation and Kerr-McGee Corporation
OKLAHOMA CITY, May 12 2009/PRNewswire-FirstCall/ -- Tronox Incorporated (PinkSheets: TRXAQ) (PinkSheets: TRXBQ) today filed an adversary complaint against Kerr-McGee Corporation and its successor, Anadarko Petroleum Corporation, in its Chapter 11 Cases in the United States Bankruptcy Court for the Southern District of New York. The complaint asserts that Kerr-McGee defrauded Tronox's creditors through its separation and spin-off of its former chemical subsidiary in 2006. Tronox seeks recovery for fraudulent transfers involving valuable oil and gas assets and massive actual and contingent environmental, tort, retiree and other liabilities. The complaint asserts that Tronox was doomed to fail at the time of the spin off, having been grossly undercapitalized, stripped of its most valuable assets and essential cash, and overburdened with legacy environmental, tort and retiree liabilities. Less than three years after the spin-off, Tronox filed for chapter 11 bankruptcy protection on January 12, 2009.
U.S. Seeking to Intervene in Tronox Case Against Kerr-McGee
Fri. May 22, 2009; Posted: 06:17 PM
The federal government claims Kerr-McGee Corp. fraudulently shifted hundreds of millions of dollars of environmental liabilities in its spinoff of subsidiary Tronox Inc., according to civil complaint filed this week in federal bankruptcy court in New York.
Tronox, which filed for bankruptcy in January, made similar claims in a recent complaint against the longtime Oklahoma City energy company and Anadarko Petroleum, which bought Kerr-McGee in 2006 for $18 billion five months after it spun off Tronox as an independent company.
The U.S. Attorney for New York's Southern District is seeking to intervene in Tronox's action against Kerr-McGee and Anadarko. Federal officials are seeking the bankruptcy court's approval to join Tronox in its claims against Kerr-McGee and Anadarko.
The government complaint seeks to reverse the alledgedly fraudulent transfers of long-term liabilities or to obtain a judgment against Anadarko and Kerr-McGee for the amount of the cost of the environmental liabilities that were shifted to Tronox.
The government has been investigating fraud allegations related to Kerr-McGee's spinoff of Tronox "for some time," and has stuck a deal with Tronox to join forces, the complaint said.
Tronox is the world's third-largest producer, and marketer of titanium dioxide pigment,with an annual production capacity of 642,000 tonnes. Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. The company's five pigment plants, which are located in the United States, Australia, Germany and the Netherlands, supply high-performance products to approximately 1,100 customers in 100 countries. In addition, Tronox produces electrolytic products, including sodium chlorate, electrolytic manganese dioxide, boron trichloride, elemental boron and lithium manganese oxide.
Tronox Incorporated engages in the production and marketing of titanium dioxide pigment worldwide. Its titanium dioxide is a white pigment used in a range of products for its ability to impart whiteness, brightness, and opacity.
The company's pigment products are used in various consumer applications, such as coatings, plastics, and paper, as well as in specialty products, such as inks, "foods", and cosmetics.
It also produces Electrolytic Manganese Dioxide, which is used by the battery industry as the cathode material for primary batteries;
Sodium Chlorate that is used by the pulp and paper industry;
Lithium Manganese Oxide and Lithium Vanadium Oxide used in rechargeable lithium batteries; and
Boron specialty chemicals comprising Boron Trichloride that is used in pharmaceuticals, "semiconductors", high-performance fibers, specialty ceramics, and epoxies; and
Elementary Boron, which is used in igniter formulations for the defense, "pyrotechnic", and automotive air bag industries. Tronox was founded in 1964 and is based in Oklahoma City, Oklahoma.
One Leadership Square Suite 300
211 North Robinson
Oklahoma City, OK 73102-7109
United States - Map
Web Site: http://www.tronox.com
Index Membership: N/A
Sector: Basic Materials
Full Time Employees: 2,130
Board of Directors and Corporate Officers
Primary SIC — Industry Classification
2810 - Industrial Inorganic Chemicals
State Of Incorporation
Jurisdiction Of Incorporation
SEC Reporting Status
SEC Reporting Company
Fiscal Year End
Note: Tronox once a NYSE stock now trades on the OTC. It has been split into 2 trading companies, company A and B, both Pinksheets. The O/S shares of 41.6 million were split between the 2.
Estimated Market Cap $1,017,583 as of Dec 26, 2008
Outstanding Shares 18,556,127 as of Oct 31, 2008
Number of Share Holders of Record 15 as of Mar 14, 2008
Estimated Market Cap $1,017,583 as of Dec 26, 2008
Outstanding Shares 22,889,431 as of Sep 30, 2008
Number of Share Holders of Record 12,517 as of Sep 30, 2008
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