Butadiene supplier TPC completes restructuring, exits chapter 11

Houston, Texas – US-based butadiene and C4 products supplier TPC Group has completed its chapter 11 reorganisation plan, which was launched earlier in the year to eliminate a large chunk of the company’s secured debts.

In a statement 16 Dec, the supplier said it has now emerged from the process as “a stronger, more competitive business,” having "eliminated" $950 million (€890 million) of its $1.3 billion debts.

In addition, the process covered contingent litigation liabilities arising from an explosion at the company’s Port Neches facility in November 2019, TPC added.

Following the reorganisation, TPC said it has achieved “an industry-leading balance sheet” with “a definitive and consensual resolution of legacy liabilities.”

Furthermore, the company said its commercial contracts and relationships had been strengthened while liquidity was strong.

TPC Group and certain of its subsidiaries filed for chapter 11 bankruptcy protection in June to enhance the liquidity profile of the company.

According to chairman, president and CEO Edward Dineen, events including the Covid pandemic, supply-chain issues, commodity-price rises, higher energy costs, the 2021 Storm Uri, and the explosion at Port Neches had caused financial strain for the company in recent years.