Tronox Inc. (TROX)

[High Dive]

Form 8-K for TRONOX INC

17-Nov-2009

Other Events



Item 8.01 Other Events
As previously disclosed, the Company continues to pursue a dual-track process in an effort to maximize value for the estate of the Company and the Company's stakeholders. As part of this process, the Company is actively pursuing a sale of all or substantially all of the Company's operating assets through
Section 363 of the Bankruptcy Code. The Company has previously entered into a "stalking horse" bid with affiliates of Huntsman Corporation, and is currently engaged with several parties to create competition with that stalking horse bid at a public auction for such assets, which is expected to be held in early December 2009.
While the sale process continues, the Company is also working with its stakeholders concerning the possibility of a stand-alone reorganization as an alternative to the sale. As part of this effort, on November 10, 2009, Tronox Incorporated (collectively with its direct and indirect subsidiaries, the "Company") entered into letter agreements with each of General Electric Capital Corporation ("GE") and Goldman Sachs Lending Partners LLC ("Goldman") each to act as financing source and arranger, respectively, in connection with providing new debtor in possession to exit financing for a $125 million asset backed revolver facility and a $300 million first lien term loan (such new financing, the "DIP to Exit Facilities"). If the Company is able to reach agreement with its stakeholders regarding a standalone reorganization and chooses to pursue a reorganization rather than a sale, and if the Company, GE and Goldman's efforts are successful and a plan of reorganization is confirmed, the proceeds from the DIP to Exit Facilities would be used to refinance the Company's existing indebtedness, fund a potential settlement with the United States Government and be available for general corporate purposes following the Company's exit from bankruptcy.

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