Retracting an earlier opinion regarding no other alternative to paying off debt than an asset sale!!!!!
Would I be correct to say that Chemtura can exit BK once terms with it's bondholders have been renegotiated, and the revolving loans due in 2009 have been paid off? These debts total $564 million roughly, the rest of the 1.5 billion in debts aren't due for years. I realize $564 million is no small amount, however if terms for these two items can be renegotiated, then Chemtura should be able to exit BK fully intact. Bankruptcy was essentially a stalling technique used by Chemtura to give them more time to pay off these debts. In an earlier post, not sure of the exact date, I mentioned that I thought Chemtura had no other alternative to pay off it's debt, other than to sell off some of it's assets. Now that things are turning around I wonder if they still need to sell off assets? Doesn't the fact that they are now starting to show monthly profits give them more alternatives for paying off their debt other than an asset sale? Of the total debt that Chemtura has, they really only need to be concerned with about 30% of it now. Chemtura should come out of this BK smelling like roses, and so should it's shareholders. I was having my doubts for awhile, but after reading an old post, I now realize the potential of this stock and the error of my reasoning!!!!
AI
