(Bloomberg) – Ascend Performance Materials Inc., a chemical company backed by SK Capital Partners, has filed for bankruptcy and said it intends to reorganize with the support of its lender.
Houston-based Ascend and its corporate affiliates listed assets and liabilities between $1 billion and $10 billion in Texas’s Chapter 11 petition Monday.
Ascend said bankruptcy filings will allow businesses to reduce debt from their balance sheets while continuing to operate as usual. The company’s lenders have agreed to provide $250 million in Chapter 11 financing to support the rise in the restructuring process.
The company said it expects to complete the restructuring in about six months. Ascend said its non-U.S. subsidiary is not included in the Chapter 11 document.
The bankruptcy filing is after discussions between the company and the lender, which has been deducted from cash. According to Bloomberg, some lenders also agreed to provide new rescue financing for Ascend in March.
SK Capital Partners purchased Ascend from Solutia Inc. in 2009 for $54 million. Ascend then grew rapidly, purchasing facilities in Europe and China, leveraging the capital of a small number of investors.
Ascend has previously said it is in talks with lenders to strengthen its financial position and maximize the value of stakeholders.
“We have been working with lenders over the past few months to define the best way forward for Ascend,” Phil McDivitt, Ascend president and CEO, said in a statement Monday. “We expect the restructuring will significantly reduce Ascend-funded debt obligations and ensure we have sufficient location to continue to implement our long-term strategy.”
– Assistance with Reshmi Basu.
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