Reichhold files for bankruptcy protection

The company is in the process of restructuring its debts, via financing from its bondholders. Affiliates located outside the U.S. are not included in the filings.

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Reichhold, Inc. (Durham, N.C., USA) announced September 30 that it has filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware. This action was taken to facilitate a restructuring of the debts of Reichhold, Inc. which represents only the U.S. portion of the global Reichhold organization.

The Company announced that it has arranged $130 million USD in financing from its bondholders to fund continuing operations, of which $100 million (subject to court approval) will be available to Reichhold, Inc. in the form of debtor-in-possession (DIP) financing. The financing will also be used in part to repay the Company’s and its affiliates’ existing secured financing in North America and Europe. The bondholders will also serve as the stalking horse bidder for the U.S. business in a 363 sale process to be conducted over the next few months.

Reichhold affiliates located outside the U.S. are not included in the filings. These entities will continue to function outside of the Chapter 11 process and they have the necessary liquidity to continue their operations in the ordinary course of business.

Reichhold has filed a number of customary motions seeking court authorization to continue to support its business operations during the bankruptcy process, including the payment of employee salaries and health benefits without interruption. The goal is to continue its relationships with customers and suppliers in the ordinary course of business.

"For over 85 years, Reichhold has provided value to our global customers. All of Reichhold’s operations are open and serving customers as usual. We have the full support of our bondholders and will emerge from this process even more capable of developing and delivering the innovative products and services that our customers value," said John S. Gaither, chairman, president and CEO of Reichhold Industries, Inc.

Additional information is available on Reichhold’s website at www.Reichhold.com or by calling Reichhold’s Restructuring Hotline, toll-free in the U.S. at (844) 246-9934. For calls originating outside the U.S., please call +1 (919) 558-2300. Cole, Schotz, Meisel, Forman & Leonard, P.A. (legal advisor) and CDG Group LLC (financial advisor) are representing Reichhold, Inc. Latham & Watkins LLP (legal advisor) and Moelis & Company (investment banker) are serving Reichhold Industries, Inc.

Reichhold is one of the world’s largest manufacturer of unsaturated polyester resins and a leading supplier of coating resins for the industrial, transportation, building and construction, marine, consumer and graphic arts markets.