Chemtura Corp (fka CHMT)

[novachem]

Very Interesting read: Rulings Impact Hostile Takeovers of Bankrupt Companies' Debt

In some cases, the ability to buy claims has allowed strategic investors to gain control of
debtors. In these instances, claims trading plays the same role as a conventional takeover
contest outside of bankruptcy, but the outsider buys debt instead of equity. Claim buyers will
often want to advance a reorganization plan that provides for the conversion of debt into new
equity in the reorganized debtor for the purpose of transforming the claims buyer into a
controlling shareholder or largest shareholder. There have been a number of bankruptcy cases
involving a takeover fight.

http://www.hunton.com/files/tbl_s47Details/FileUpload265/2885/Rulings_Impact_Hostile_Takeovers.PDF