Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11

Sherwin Alumina Chapter 11 Petition Filed

Privately-held Sherwin Alumina and Sherwin Pipeline filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 16-20012. The Company, which produces alumina, a key component in the production of aluminum, is represented by Zack A Clement of Zack A. Clement PLLC. The Company is a U.S. unit of Baar, Switzerland-based Glencore plc, an Anglo–Swiss multinational commodity trading and mining company. In connection with the Chapter 11 filing, Sherwin Alumina announced a Chapter 11 Plan that incorporates and contemplates a stalking horse asset purchase agreement and marketing process with Corpus Christi Alumina, an affiliate of its senior secured lender Commodity Funding (which is a subsidiary of Sherwin Alumina's ultimate equity owner: Glencore Ltd). Under the terms of the asset purchase agreement, Corpus Christi Alumina will acquire substantially all of Sherwin Alumina's assets. Corpus Christi Alumina will serve as the stalking horse bidder and its bid is subject to higher and otherwise better offers, among other conditions. The Company plans to seek approval of the proposed sale as part of the confirmation of the Plan. If consummated, the proposal would allow the Company to expeditiously complete its Chapter 11 sale process and emerge debt-free. According to a corporate release, "Like many other commodity companies, Sherwin has been significantly impacted by the challenging commodity pricing environment. These macro-economic conditions have negatively affected the underlying value of Sherwin's assets. The Company intends to restructure those obligations and unlock the value of its business enterprise in Chapter 11." Sherwin Alumina has received a commitment for $40 million in debtor-in-possession financing from Commodity, the Company's primary pre-petition lender, to support its continued operations. Sherwin Alumina's Chapter 11 petition indicates total assets greater than $100 million.

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