TX Chemical Producer Reaches $30 Million Payment Regarding Bankruptcy
Bankrupt Texas petrochemical producer TPC Group on Thursday announced a $30 million settlement with junior creditors, including people with injury and property damage claims related to a 2019 fire explosion and fire at a Port Neches, Texas, refinery.
The Houston-based firm filed a prepackaged Chapter 11 case in June after reaching an agreement with bondholders to eliminate $950 million of $1.3 billion in secured debt and shed liabilities from an explosion and fire at its plant in Port Neches, Texas. A bankruptcy plan based on that agreement would have left just $5 million for junior creditors and litigation claimants.
Thursday’s settlement increases junior creditors’ recovery to $30 million and ensures that a higher percentage of those funds will go to litigation claimants. Bondholders, who will not be fully repaid in TPC’s restructuring, agreed not to collect any money from the $30 million fund.
