Chemtura Corp (fka CHMT)

[BBalls-N-CowTown]

Sent USPS overnight certified to Trustee & Judge this AM:

BBalls-N-CowTown
TEXAS

October 4, 2009

Ms. Susan D. Golden, Esq.
Office of the United States Trustee
Southern District of New York
33 Whitehall Street, 21st Floor
New York, NY 10004

Dear Ms, Golden,

I am a stockholder of Chemtura Corporation, as is my wife, and my children and I manage all of our investments. I have 30 years experience in the energy and chemicals industry where I continue to serve professionally as an engineer. Although I never was associated with Chemtura and am now active in the exploration and production business, I purchased this stock because of its strategic value in the particular markets is serves. It is a significant proportion of our portfolios. I also know from past experience as an estate trustee and in other matters, professional experience in oil and gas asset acquisitions etc, that value is determined as to the intended purpose considering payout of investment and value growth potential.

I am writing in regard to the Directive to the Trustee by the Honorable Judge Gerber to consider the inclusion of an equity representation on the fee committee in a hearing on September 29, 2009. I am concerned that recent emails and filings by Kirkland & Ellis, LLC (K&E) indicate an ineffectiveness to fully represent the equity holders of Chemtura, and I assert and urge that an equity committee in support of these chapter 11 proceedings is sorely needed in light of this and the many debt restructuring options that could be pursued in the reorganization. In support of that, I would like to assert that there is shareholder equity that must be represented for the following reasons:

• Chemtura is a significant part of the chemicals sector of the US economy. It does not suffer from a broken business model, but a lack of liquidity caused failed monetary policy that has created these conditions for many of our corporations and industries. “Chemtura is now generating cash. We filed for Chapter 11 – not so much because of profitability but because of liquidity issues, as debt was coming due and the banks weren’t lending,” he said. Source: August 24 Interview of Craig Rogerson, CEO of Chemtura, ICIS News

• Current assets exceed liabilities and Chemtura 2009 and 2016 bonds are trading above par value, while the 2026 bond is at a post-petition high level. The solvency issue for Chemtura is a question of fair market valuation. Without a voice on this matter, Chemtura’s shareholders are not fairly represented. Chemtura has long been capitalized by shareholder equity before and has remained so during this bankruptcy proceeding. The hard-earned capital deployed in this equity is just as real as that deployed by any creditor.

• A large proportion of the value in Chemtura lies in the investment it has in foreign assets that are not in bankruptcy. Since March of this year, the valuation of our US dollar has declined (see embedded graph showing the US Dollar Index) to an extent that indicates that these foreign assets may have appreciated by ~16%, or roughly $300 to $400 million dollars on this simplified basis alone.

http://stockcharts.com/h-sc/ui?s=$usd&p=D&yr=1&mn=0&dy=0&id=p63580260621

• We have seen positive earnings in multiple successive monthly operating reports from the company despite the huge burden of legal representation in support of this bankruptcy proceeding.

• The business climate for Chemtura and it’s competitors has continued to improve for the duration of this proceeding. As such, valuations which are somewhat dependent of revenues must take this into account to determine fair value (see graph below).

http://www.marketwatch.com/tools/industry/indchart.asp?bcind_ind=1357&bcind_sid=&bcind_o_symb=&bcind_period=ytd&bcind_compidx=aaaaa%3A0&bcind_comp=&bcind_compind=aaaaa%3A0&indchart.x=37&indchart.y=9

• It is a great time in the chemical industry, with cheap feedstocks due to the flush gas production and investment overhang in the upstream energy sector immediately preceding our national financial crisis which led to liquidity issues for companies like Chemtura. Check out year to date share price performance on Albermarle (+42%) , Eastman Chemical (+58%), or Dow Chemical (+56%), while Chemtura is at -37% and trades at less than a dollar per share. A year ago, Chemtura stock traded at $5 per share.

• It is easy to lose sight of the basics of the business, in light of all the litigation and competing business models and evident avarice of the parties involved. Law360, New York (July 30, 2009) -- Unsecured creditors of bankrupt specialty chemical producer Chemtura Corp. wasted no time in filing an adversary case against Citibank NA after a judge signed off on their request to pursue claims against the lender on behalf of the company.

For these reasons, I can support my assertion that an Official Equity Committee is necessary for the protection of the estate and equity therein. Although I have heavy demands due to the current situation in my job, I am very willing to serve as a member of the Equity Committee if formed.

Thank you for your consideration of the facts presented above and my urgent request. I look forward to your response.

Respectfully yours,



BBalls-N-CowTown

CC: Hon. Judge Robert E. Gerber
United States Bankruptcy Court, Courtroom: 621
One Bowling Green
New York, NY 10004-1408