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
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Author: Chris Seelinger
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
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.