Titanium dioxide company Venator filed for U.S. bankruptcy protection for capital reorganization

British chemical maker Venator Materials (VNTR.N: Quotes) said in a court filing that the company has filed for bankruptcy protection in the United States.

Based on documents filed in the U.S. Bankruptcy Court for the Southern District of Texas, Venator estimates its assets and liabilities at between $1 billion and $10 billion.

The producer, which reported a loss of $228 million in the last three months of 2022 due to falling demand and rising costs, intends to file for a Chapter 11 recapitalization, funded by a debtor-held asset (DIP) financing vehicle, which includes a commitment of $275 million from creditors to provide new financing.

Venator said in a statement on Monday that if the plan is approved by a U.S. court, it will securitize "almost all" of the company's debt.

"The agreement we have reached with lenders on a recapitalization plan will significantly reduce Venator's debt burden,"Venator CEO Simon Turner said.

Venator, which has long struggled to remain competitive, reported that titanium dioxide revenue fell 41% year-on-year in the fourth quarter of 2022 due to falling demand and currency headwinds, and expects the situation to deteriorate further in the first quarter of 2023.

The company suspended operations at its titanium dioxide plant in Duisburg, Germany, in the fourth quarter, citing unsustainably low contribution margins. The company restarted the site in February, but noted that continuing production in the long term may not be economically feasible.