WAYNE, PA — Trinseo PLC (OTCM: TSEOF) has reached a restructuring agreement with a majority of its senior lenders that would eliminate roughly $2 billion in debt through a pre-packaged Chapter 11 bankruptcy process, as the chemicals and materials producer moves to stabilize its balance sheet amid mounting financing pressures.
The company said the restructuring would reduce annual interest expense by about $140 million and transfer ownership of the reorganized business to existing lenders, who are expected to receive 100% of the company’s equity following emergence from bankruptcy.
Trinseo plans to file for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas in the coming weeks and expects an expedited restructuring process.
The agreement includes approximately $158 million in debtor-in-possession financing, a $150 million accounts receivable facility, and additional exit financing intended to support operations during and after bankruptcy proceedings.
The restructuring highlights continued strain across portions of the chemicals and industrial manufacturing sectors, where companies have faced elevated borrowing costs, weaker industrial demand, and pressure on margins tied to raw material and energy expenses.
Trinseo indicated trade creditors, vendors, suppliers, and other holders of general unsecured claims would remain unimpaired under the proposed plan, while the company expects to continue operations without disruption.
The Chapter 11 filing is expected to include certain U.S. affiliates and select non-operating international entities, though the company indicated most global operating subsidiaries will remain outside the court-supervised restructuring process.
“With the support of our lenders, this agreement marks an important step forward to strengthen our balance sheet so we can continue to operate our business uninterrupted,” Chief Executive Frank Bozich said.
The company also stated that no concessions from employees, customers, vendors, or suppliers are included in the restructuring agreement.
Separately, Trinseo amended its super-priority revolving credit facility earlier this month to increase borrowing capacity by $25 million, providing additional liquidity for working capital and restructuring-related needs.
The company said it intends to seek court approval for customary motions allowing payment of employee wages, benefits, and supplier obligations during the bankruptcy process.
Latham & Watkins and Hunton Andrews Kurth are serving as legal advisers to Trinseo, while Centerview Partners and FTI Consulting are acting as financial and communications advisers.
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