Is Trinseo filing for bankruptcy?

Trinseo Plc is in discussions with creditors about restructuring its debt, and a bankruptcy filing is a possibility in the coming weeks.

What is the current financial situation of Trinseo?

Trinseo recently missed an interest payment on its second-lien bonds, entering a 30-day grace period, and has projected a significant net loss for the fourth quarter.

What is Trinseo doing to address its debt?

Trinseo is in confidential talks with creditors to restructure its debt, aiming to reduce its debt burden and lower interest costs, while assuring operations continue as usual.

Home / Business and Economy / Plastics Maker Trinseo Eyes Bankruptcy Amid Debt Talks

Plastics Maker Trinseo Eyes Bankruptcy Amid Debt Talks

21 Feb

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Summary

Trinseo is negotiating debt restructuring with creditors.
The company might file for bankruptcy in the coming weeks.
Interest payment was missed, triggering a 30-day grace period.

Plastics Maker Trinseo Eyes Bankruptcy Amid Debt Talks

Trinseo Plc, a Pennsylvania-based plastics manufacturer, is engaged in discussions with its creditors regarding a potential debt restructuring that could involve a bankruptcy filing within the next few weeks. These confidential negotiations are focused on alleviating the company's debt load and reducing interest expenses.

Discussions are ongoing, and the company is exploring options to strengthen its balance sheet. Trinseo has entered a 30-day grace period after failing to make an interest payment on its second-lien bonds, with this period concluding on March 19. This follows a similar transaction approximately one year prior, where lenders provided $300 million in new cash and extended debt maturities.

The company's financial challenges stem partly from disrupted global trade flows and weakened consumer confidence. Trinseo has projected a net loss of $170 million to $180 million for the fourth quarter, alongside a free cash flow of $20 million and liquidity of about $365 million at year-end. A company spokesperson stated that operational activities continue as normal, and any restructuring aims to support ongoing innovation and customer supply.

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