The TPC group is embarking on a transformational deleveraging and

HOUSTON, June 01, 2022 (GLOBE NEWSWIRE) — TPC Group Inc. (“the Company”), a global leader in providing a diverse line of quality products to chemical and petroleum companies worldwide, announced today today that he has definitely taken steps to strengthen his balance sheet and position the Company as a stronger and more competitive company. The Company and certain of its subsidiaries have voluntarily filed for Chapter 11 protection with the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Company intends to use the proceeding to implement a financial restructuring with the support of the majority of its secured noteholders that will deleverage and recapitalize the Company’s balance sheet and permanently settle other liabilities inherited from the past. The Company expects to continue its operations without interruption throughout the process.

In connection with the Chapter 11 filings, the Company and certain of its affiliates have entered into a Restructuring Support Agreement (as amended, the “RSA”) with an ad hoc group of holders of approximately 88% of the Company’s $205.5 million outstanding, 10.875% secured bonds maturing in 2024 and approximately 78% of the Company’s $930 million of outstanding 10.5% secured bonds maturing in 2024 (the “Bondholders”) and corporate sponsors (the “Sponsors”), among others. The RSA secures the support of bondholders and sponsors and establishes the framework for the restructuring of the company, which upon its emergence should resolve all tort liabilities arising from the Port Neches facility incident and eliminate of the company’s balance sheet more than $950 million. of the Corporation’s secured consolidated debt of approximately $1.3 billion. The transactions envisaged by the RSA, once completed, will enable the Company to emerge from bankruptcy with a considerably improved liquidity profile by providing for capital injections in the form of:

  • $450 million in two rights offerings and $350 million in exit notes, all of which will be guaranteed by certain of the supporting noteholders, subject to the terms and conditions set forth in the RSA;
  • a $323 million deferred-draw debtor-in-possession financing facility provided by some of the supporting noteholders, which includes up to $85 million in new funds to support the company’s operations and help fund the process restructuring, subject to customary conditions; and
  • a $200 million asset-based revolving debtor-in-possession facility provided by Eclipse Business Capital LLC and its affiliates, with the Company’s option to convert such facility into a revolving asset-based exit facility, subject to subject to customary conditions.

“Over the past few years, TPC Group has positioned our company as a partner and key player in the petrochemical industry. However, an unprecedented series of events including the COVID-19 pandemic, supply chain issues, raw material price increases, higher energy costs and operational challenges resulting from the winter storm of Uri in 2021 and the explosion of our Port Neches factory in November 2019, caused financial problems. pressure for the Company,” said Edward J. Dineen, Chairman and CEO of TPC Group. “We have undertaken numerous efforts to deal with the impacts of these events and preserve liquidity, which has given us the time needed to consider the best path forward for our business and our stakeholders. We are confident that through this process we will strengthen our liquidity, significantly improve our debt position and permanently resolve the liabilities associated with the Port Neches facility incident.

For more than 75 years, the Company has been the largest independent processor of C4 crude and a leader in North America in all of its product lines. Additionally, the Company provides critical infrastructure and logistics services to petrochemical operators along the Gulf Coast. By establishing an appropriate underlying financial structure, the Chapter 11 process will allow the Company to continue to build on its rich history and return to a path of sustained and profitable growth.

The Company has filed certain “first day” petitions with the bankruptcy court so that it can seamlessly transition to Chapter 11 without disrupting its normal course operations, thereby enabling the Company to fulfill its future obligations to its parties. stakeholders and to pay its employees and certain suppliers. The Company is committed to continuing its operations in a safe and environmentally responsible manner, while respecting its commitments to its partners in the petrochemical industry, as well as to its employees and surrounding communities.

For more information on the company’s Chapter 11 case, please visit https://cases.ra.kroll.com/TPCGroup. A copy of the RSA and related cleanup documents can be found on the Company’s Secure Investor Portal for current investors who have registered and filed a Chapter 11 Complaint with the Company.

The Company is being advised in this process by Baker Botts LLP, Simpson Thacher & Bartlett LLP, Moelis & Company LLC and FTI Consulting. Support Noteholders are being advised by Paul Hastings LLP and Evercore. Eclipse Business Capital LLC is advised by Goldberg Kohn Ltd.

About TPC Group

TPC Group, headquartered in Houston, is a leading producer of value-added products derived from petrochemical feedstocks such as C4 hydrocarbons, and a provider of critical infrastructure and logistics services along the coast. of the Gulf. The Company sells its products in a wide range of performance, specialty and midstream markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants. With an operating history of more than 75 years, TPC Group has a manufacturing plant in the Industrial Corridor adjacent to the Houston Ship Channel and operates product terminals in Port Neches, Texas and Lake Charles, Louisiana.

No solicitation or offer

Any new securities to be issued in connection with the restructuring transactions may not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities law, but may be issued in under an exemption from such registration under the United States Bankruptcy Code or the Securities Act. These new securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws. This press release does not constitute an offer to sell or buy, or the solicitation of an offer to sell or buy, any securities referred to herein, nor does this press release constitute plus a solicitation of consents or votes to accept a Chapter 11 plan. Any solicitation or offer will be made only pursuant to a confidential offering memorandum and information statement and only to persons and within the jurisdictions permitted by applicable law.

Contact:

Sara Cronin
Media Relations
713.475.5243

André Grygiel
Investor Relations
713.840.2045

About Christian M.

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