Saturday, May 2, 2009
© Copyright 2014
Gwinnett Daily Post
Lawrenceville - Chemtura, the parent company of BioLab, announced this week it has secured $400 million in credit as it works to emerge from bankruptcy protection.
Chemtura filed for Chapter 11 bankruptcy March 18 after seeing a significant drop in volume for its products over the past year. The bankruptcy filing affects the company's operations and subsidiaries only in the United States, according to court papers filed in the U.S. Bankruptcy Court in New York City.
Among the companies affected is BioLab, a manufacturer of pool and spa chemicals, which has 4,750 employees in Georgia with the bulk of those working in facilities located in Lawrenceville. BioLab also maintains a distribution, packaging and warehouse center in Conyers.
Chemtura is a global manufacturer of speciality chemicals, crop protection products and home care products along with pool and spa supplies. The company reported sales of $3.5 billion in 2008.
The company announced Wednesday it had received court approval for a $400 million loan from Citibank, referred to as a debtor-in-possession, or DIP, credit facility.
Chemtura spokesman John Gustavsen said the DIP loan, combined with cash from ongoing operations, will give the company some financial flexibility to restructure as it emerges from bankruptcy.
"It means there's additional financial facilities to where we can continue operations," he said. "We need to demonstrate our business competence to the court and to the creditors."
No layoffs or facility closings are planned in connection with the bankruptcy process, he said.