FAQs
What is Chapter 11?
First and foremost, a Chapter 11 filing does NOT mean that Tronox is going out of business. Chapter 11 is a legal mechanism for court-supervised reorganization or restructuring of a company's obligations. Chapter 11 provides a way for a company to address its financial challenges in order to become a viable entity, while continuing day-to-day operations.
In other words, we filed for Chapter 11 to preserve and strengthen our business by addressing our current financial situation and our operational opportunities.
Do you have enough money to stay in business?
Our current lenders, led by Credit Suisse, have agreed to provide Tronox with up to $125 million in debtor-in-possession financing. The company will use the funds to implement its restructuring and pay normal operating expenses, including employee wages and payments to suppliers. The financing requires court approval.
Does this mean you are going out of business?
Absolutely not. We filed for Chapter 11 to address burdensome legacy liabilities, restructure the balance sheet and position the company for long-term success.
What happens during Chapter 11?
The Chapter 11 filing triggers a "stay," which generally prevents anyone from collecting debts owed by the company before the petition date, such as loan payments it would ordinarily make to creditors and bondholders and payments to suppliers for goods or services received before the filing.
Chapter 11 permits, and in fact encourages, daily operations to continue. We will continue to serve our customers, pay our employees, and pay for goods and services purchased after the filing date in the ordinary course of business.
While operating the business, management will work with the company’s creditors to finalize a plan to restructure or reduce its debt. The restructuring plan is called a plan of reorganization. When the plan is accepted by the creditors and approved by the court, it is said to be confirmed, and Tronox will emerge from Chapter 11 as a reorganized company.
How long will the company be in Chapter 11?
Tronox will work hard to emerge from Chapter 11 reorganization as soon as possible. The timeline can be impacted by various factors and providing an estimated date is not possible at this time.
Which entities are included in the filing?
Tronox and certain of its subsidiaries filed voluntary petitions to restructure under Chapter 11 of the U.S. Bankruptcy code. The filing does not include Tronox’s operations outside of the U.S., which are based in Australia, Germany and the Netherlands.
Do companies ever emerge from Chapter 11 and continue to operate successfully?
Yes. Many companies have successfully used Chapter 11 to restructure debt, including Solutia, Macy’s, Pacific Gas & Electric, to name a few -- all of which are performing well today.
Why did Tronox file for Chapter 11 bankruptcy?
The decision to file was made to address the legacy liabilities we incurred at the time of our spinoff from Kerr-McGee. These liabilities, including environmental remediation and litigation costs, have been an obstacle to our financial stability and success.
What does the company hope to achieve through the restructuring?
Filing for Chapter 11 is the best way to ensure we can position the company to achieve its true value long-term.
Will management remain in place during the restructuring?
One of the key aspects of Chapter 11 is that management remains in place. Dennis Wanlass as a member of the board and interim chairman and CEO has extensive experience in these types of situations. Mr. Wanlass will lead Tronox through the Chapter 11 restructuring.
Where can I find Chapter 11 case information?
In addition to the Restructuring Information page on our Web site, we have also established a restructuring information hotline and e-mail address for inquiries from employees, customers, suppliers and all other interested parties:
Toll free from within the U.S. or Canada: 1-866-775-5009
Outside of the U.S. and Canada (not toll free): 1-405-775-5000
E-mail: reorganization@tronox.com
How can I get a copy of the petitions?
Copies of the Chapter 11 petitions and other documents filed with the court will be available shortly after the filing at www.tronox.com. The petitions are also accessible through Kurtzman Carson Consultants at www.kccelle.net/Tronoxhttp://www.kccllc.net/Tronox or by calling 1-866-381-9100.
I have a lawsuit pending against Tronox. What happens now?
Generally, under the U.S. Bankruptcy code, certain lawsuits and other legal matters are stayed for the entirety of the reorganization, absent a court order granting relief from the automatic stay. We suggest you discuss these matters with your attorney.