By AQUA Editors
May 2009
On March 20, Chemtura Corporation announced that it and its 26 U.S. affiliates, including chemical manufacturer BioLab,
had filed for relief under Chapter 11 of the U.S. Bankruptcy Code in bankruptcy court for the Southern District of New York.
“Our parent company has had some difficult times,” explains Charlie Schobel, BioLab’s vice president and general manager. “They’re in polymer additives and flame retardants. Those go into automobiles and computers and telecommunications equipment and all types of plastic. Well, you know what’s happened to the economy, so their sales have gone down significantly in those areas.”
According to Schobel, the filing will allow Chemtura and its affiliates to operate normally until it comes up with a plan to restructure its balance sheets and eventually pay its creditors.
“What all of that means for BioLab and our customers is that our customers are going to see no difference,” he explains. “We’ll be able to produce product, ship it to our customers, the salespeople will still call, the phones will be answered. It’s basically business as usual as they go through this process.
“We’re going to come out just fine.”
BioLab is a strong part of Chemtura, Schobel says, making up about 20 percent of Chemtura’s $3.5 billion in sales in 2008.
Further information about the court proceedings is available at www.kccllc.net/chemtura.