Latest news with #PhilMcDivitt
Mint
21-04-2025
- Business
- Mint
SK Capital-Backed Chemical Business Ascend Files Bankruptcy
(Bloomberg) -- Ascend Performance Materials Inc., a chemicals business backed by SK Capital Partners, has filed bankruptcy and said it intends to restructure with support from its lenders. Houston-based Ascend and its corporate affiliates sought court protection Monday in Texas listing assets and liabilities each of between $1 billion and $10 billion on its Chapter 11 petition. Ascend said the bankruptcy filing will allow the business to trim debt from its balance sheet while continuing to operate as usual. Company lenders have agreed to provide $250 million in Chapter 11 financing to support Ascend during the restructuring process. The company said it expects to complete its restructuring in about 6 months. Ascend said its non-U.S. subsidiaries are not included in the Chapter 11 filings. The bankruptcy filing follows discussions between the company and its lenders to swap out a portion of their debt for equity in the business which has been strapped for cash, Bloomberg previously reported. Some lenders also agreed in March to provide Ascend with new rescue financing, Bloomberg also reported. SK Capital Partners bought Ascend from Solutia Inc. in 2009 for about $54 million. Ascend then grew rapidly, buying facilities in Europe and China, using capital from a small pool of investors. Ascend has previously said it is holding talks with lenders to strengthen its finances and maximize value for tis stakeholders. 'Over the last several months, we have been working with our lenders to define the best path forward for Ascend,' Ascend President and Chief Executive Officer Phil McDivitt said in a Monday statement. 'We expect that the restructuring will substantially reduce Ascend's funded debt obligations and ensure that we are well-positioned to continue executing on our long-term strategy.' --With assistance from Reshmi Basu. More stories like this are available on First Published: 22 Apr 2025, 01:54 AM IST
Yahoo
21-04-2025
- Business
- Yahoo
Ascend Performance Materials Takes Steps to Strengthen Balance Sheet and Position the Company for a Stronger Future
Initiates restructuring process with support from existing lenders to strengthen balance sheet and improve financial foundation Obtains commitment for $250 million in financing Continues to operate as usual and provide high-performance materials to customers; shipments and product delivery to continue in normal course HOUSTON, April 21, 2025 /PRNewswire/ -- Ascend Performance Materials ("Ascend" or the "Company"), a leading producer of high-performance and durable engineered materials for everyday essentials and new technologies, announced today that, with the support of its key stakeholders, it has initiated Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. The Chapter 11 process will enable Ascend to deleverage its balance sheet and continue providing best-in-class materials to nearly 1,650 customers globally. Ascend's subsidiaries that are located outside of the U.S. are not included in the Chapter 11 filings. With the support of its lenders, Ascend will use the Chapter 11 process to pursue a value-maximizing restructuring transaction that will enable the Company to emerge from Chapter 11 as a healthy, well-capitalized business. The Company will operate as usual throughout the Chapter 11 process and will continue to manufacture and produce high-performance materials that improve the quality of life today and inspire a better tomorrow. In connection with this process, the Company has received a commitment for $250 million in debtor-in-possession financing from its lenders, which is expected to provide the Company with sufficient liquidity to support Ascend throughout the Chapter 11 process. Ascend aims to complete the process in approximately six months. "Ascend has made significant strides in transforming our business, with a focus on efficiency and driving cost reductions while ensuring that we are able to operate safer than we ever have before," said Phil McDivitt, President and CEO of Ascend Performance Materials. "Over the last several months, we have been working with our lenders to define the best path forward for Ascend. We expect that the restructuring will substantially reduce Ascend's funded debt obligations and ensure that we are well-positioned to continue executing on our long-term strategy. We are confident that the Chapter 11 process will put us on a path to becoming an even stronger company with a healthier financial structure and better positioned to continue delivering high-performance materials that improve the lives of our customers." He continued, "As we embark on this process, we look forward to continuing to partner with our lenders, who believe in the underlying value and potential of our business and have provided us with funding to support our business throughout the process. We are also grateful to our customers and partners for their ongoing support and to our employees for their hard work and commitment to working safely and supporting Ascend's other values." Ascend is operating as usual throughout this process and does not expect any impact to product availability or customer contracts. The Company remains focused on creating and delivering high quality performance materials for its customers. Ascend has filed a number of customary "First Day" motions with the Bankruptcy Court seeking approval to support its operations during the Chapter 11 process, including paying employee wages, salaries and benefits without interruption. The Company expects to receive approval of these motions in the coming days. Ascend intends to pay vendors and suppliers in full for goods and services provided on or after the filing date in accordance with the Bankruptcy Code. Additional Information Additional information about Ascend's restructuring is available at Bankruptcy Court filings and other information regarding the case can be found at or by contacting Epiq, the Company's noticing and claims agent, at (888) 890-9917 (for toll-free U.S. calls) or +1 (971) 385-8728 (for tolled international calls). Ascend is advised in this matter by Kirkland & Ellis LLP as legal counsel, FTI Consulting as financial advisor, and PJT Partners as investment banker. The ad hoc group of first lien lenders to the Company is advised by Gibson, Dunn & Crutcher LLP as legal counsel and Evercore Group L.L.C. as investment banker. About Ascend Performance Materials Ascend Performance Materials makes high-performance materials for everyday essentials and new technologies. Our focus is on improving quality of life and inspiring a better tomorrow through innovation. Based in Houston, Texas, and with regional offices in Shanghai, Brussels and Detroit, we are a fully integrated material solutions provider with global manufacturing facilities in North America, Europe and Asia. Our global workforce makes the materials used to make safer vehicles, cleaner energy, better medical devices, smarter appliances and longer-lasting apparel and consumer goods. We are committed to safety, sustainability and the success of our customers and our communities. Ascend Media: Osama KhalifaOkhali@ Rachel Chesley / Rose TempleAscendComms@ View original content to download multimedia: SOURCE Ascend Performance Materials Sign in to access your portfolio
