OKLAHOMA
CITY – Tronox Inc. has received approval from its lenders for an amendment to
its senior secured credit facility.
As
a result of unexpected impacts in the second quarter, including rapid increases
in process chemical, energy and transportation costs and production
difficulties the company experienced in the second quarter, combined with the
impact of the ongoing weak U.S. economy, Tronox had requested and received
approval for a waiver to its leverage ratio financial covenant for the 2008
second quarter and subsequently requested the amendment to its leverage ratio
financial covenant for the remainder of the year.
Tronox
remains focused on reducing costs and increasing prices. In the third quarter,
the company is continuing to see a trend of further price increases being
implemented in all three regions of the world, which it believes will help
offset ongoing titanium-dioxide-industry cost increases. There is no assurance,
however, that these pricing trends will offset continuing cost increases that
the company is unable to predict and that depend on numerous factors beyond its
control. As previously announced, Tronox continues to evaluate all strategic
alternatives to improve the business, including development opportunities,
mitigation of legacy liabilities, capital restructuring and land sales.
Tronox Receives Approval for Credit Agreement Amendment
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