Filing Alert: Ascend Performance Materials Chapter 11
Ascend Performance Materials Files Chapter 11 in Southern District of Texas
Ascend Performance Materials Holdings Inc. and its debtor affiliates⁽¹⁾, a Houston, TX-based manufacturer of high-performance nylon 6,6 and related chemical intermediates used in automotive, industrial, and consumer applications, filed for Chapter 11 protection on Apr. 21 in the U.S. Bankruptcy Court for the Southern District of Texas.
The filing follows a prolonged period of margin erosion triggered by declining demand, global economic headwinds, and aggressive pricing from Chinese competitors, which forced Ascend to cut prices or risk losing market share. Operational disruptions, including a fire at its Pensacola plant and a Texas freeze, further strained liquidity, leading to over $110 million in past-due vendor obligations.
To stabilize operations and avoid a shutdown, Ascend secured a $120 million bridge loan in March and now enters bankruptcy backed by approximately $900 million in DIP financing, including $250 million in new-money loans.
The company reports $1 billion to $10 billion in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-90127.
⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.
Initial DIP Budget
DIP Milestones
Chapter 11 Debtors
Top Unsecured Claims
Key Parties
Counsel:
- Jason G. Cohen
- Bracewell LLP
- Email: jason.cohen@bracewell.com
Restructuring Counsel:
- Kirkland & Ellis LLP and Kirkland & Ellis International LLP
Investment Banker:
- PJT Partners, Inc.
Financial Advisor:
- FTI Consulting, Inc
Tax Advisor:
- Deloitte LLP
Counsel to the Disinterested Directors:
- Katten Muchin Rosenman LLP
Signatories:
- Robert Del Genio – Chief Restructuring Officer
Claims Agent:
Equity Security Holders:
- SK Titan Holdings LLC – 93.3% Equity Interest
- Other Minority Holders – 6.7% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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