Vedder Thinking | News Vedder Price Advises Board of Directors in Tronox, Inc.'s Emergence from Chapter 11
Tronox Inc. recently announced that it has emerged from Chapter 11 bankruptcy proceedings following a successful reorganization of its capital structure.
Vedder Price Shareholders Guy E. Snyder and David L. Doyle represented Tronox's Board of Directors during the course of the bankruptcy and advised the Board on all aspects of the plan and the related transactions.
As Tronox indicated in its press release announcing the plan confirmation, the plan received the full support of the federal government through the Department of Justice and various local governmental authorities who had filed claims against Tronox, Tronox's official committee of unsecured creditors, certain holders of Tronox's prepetition unsecured notes who are backstopping the equity financing needed for the plan, representatives of holders of tort claims against Tronox and Tronox's official committee of equity security holders.
Tronox will reorganize around its existing operating businesses, relying on a combination of debt and new money equity investments to meet its working capital needs and fund distributions required by the plan, which will include (a) total funded first lien debt of no more than $470 million and (b) the proceeds of a $185 million rights offering open to substantially all unsecured creditors and backstopped by the backstop parties.
“This was a great result for Tronox and all of its stakeholders,” observed Snyder, who led the firm's team, which advised the Board. "In August of 2009, Tronox contemplated a sale of the company. Thanks to the hard work of the management team and the Board, Tronox was able to complete this reorganization, which was significantly more beneficial to all stakeholders than the sale."
Vedder Price is a full-service law firm with offices in Chicago, New York and Washington, DC.
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