Tronox Files Plan Of Reorganization

Titanium dioxide producer Tronox has filed a plan of reorganization in U.S. Bankruptcy Court. The firm filed for court protection in January 2009 because it was unable to pay environmental liabilities inherited from former parent Kerr-McGee after its 2006 spin-off. In May 2009, Tronox sued Kerr-McGee and Anadarko Petroleum, Kerr-McGee’s new owner, over the liabilities. Tronox’ reorganization plan would create trusts for environmental remediation funded with $145 million in cash and 88% of any recoveries from the Anadarko litigation. Debt holders would get all of the common equity of a reorganized Tronox. Existing shareholders would also get rights to buy up to 5% of the firm’s shares. A court hearing on the plan is scheduled for Aug. 5. In December 2009, the court terminated a plan to sell most of Tronox to Huntsman Corp. for $415 million after Tronox convinced the court it could survive as an independent company.