Huntsman signs “Stalking Horse” deal with Tronox
31 Aug 2009
US Chemical maker Huntsman Corporation today said that it had signed a ''stalking horse'' asset and equity purchase agreement pursuant to which its wholly-owned subsidiary Huntsman Pigments LLC has agreed to acquire the following assets of Tronox Incorporated and its subsidiaries under Section 363 of Chapter 11 of the US.
Bankruptcy Code:
- Titanium dioxide facilities in The Netherlands and the United States (excluding Savannah, Georgia);
- A 50-per cent joint venture interest in another titanium dioxide facility in Australia and associated mining and other operations; and
- Electrolytic production facilities in the United States.
A stalking horse bid is a binding proposal for a bankrupt company's assets from an interested buyer chosen by the bankrupt company, subject to a higher offer through an auction process approved by the bankruptcy court.
Tronox and some of the company's subsidiaries had filed voluntary petitions for reorganisation under Chapter 11 on 12 January 2009.
Huntsman's bid provides for a purchase price of approximately $415 million, including working capital. Huntsman intends to finance approximately 50 per cent of the purchase price with debt.
The agreement will be submitted for approval to the United States Bankruptcy Court for the Southern District of New York.