Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Vertellus Specialties Inc. files for Chapter 11 Bankruptcy
Author: Joel R. Glucksman
Date: July 13, 2016
Key Contacts
Back
Vertellus Specialties Inc. files Chapter 11
Vertellus Specialties Inc., a major U.S. chemical manufacturer, recently announced that it had filed for Chapter 11 bankruptcy protection for its domestic operations. According to The Wall Street Journal, the company reached an agreement with its term lenders to seek an auction sale for the majority of its remaining assets.
Vertellus Specialties spirals into debt
In its bankruptcy documents, Vertellus Specialties stated that its decision to file its bankruptcy petition came after it failed to make a recent loan repayment and received a downgrade from several ratings firms. The Journal noted that Moody’s had recently downgraded the company’s credit rating due to “significant earnings deterioration” in the agriculture industry, emerging environmental liabilities risks and stiffening competition from Chinese competitors.
As a result of its recent struggles, Vertellus Specialties has $576 million in total assets, but more than $710 million in total liabilities with an additional $25 million debt total. These liabilities include a $455 million senior secured first lien term loan.
Vertellus Specialties’ reorganization plan
The opening bid from lenders at the pending auction sale will be for $453.8 million in the form of a credit bid. This lender bid will offer to cancel the debt rather than providing cash into the company, which will be part of a term loan of a $546 million load of funded debt.
In the meantime, The Journal reported that the company has also secured $110 million in debtor-in-possession financing from Black Diamond Capital Management, BlackRock, BlueBay Asset Management, Brightwood Capital Advisors and TPG Special Situations Partners to maintain normal operations throughout the auction.
This court-supervised auction sale will be part of the company’s plan to emerge from the reorganization process as a viable business.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.