ShengdaTech Seeks Bankruptcy With About $181 Million in Debt
ShengdaTech Inc. (SDTH), a maker of nano precipitated calcium carbonate for the tire industry, sought bankruptcy protection from creditors without citing a reason.
The company listed $295.4 million in assets and $180.9 million in debt as of Sept. 30 in Chapter 11 documents filed today in U.S. Bankruptcy Court in Reno, Nevada.
Bob Olsen, a lawyer with Greenberg Traurig LLP, which is representing the company, wouldn’t comment on the filing. His colleague Nancy Peterman wasn’t immediately available to return a phone call seeking comment.
Nano precipitated calcium carbonate or NPCC, is a chemical additive used in automotive and polyvinyl chloride products. ShengdaTech is a leading maker of NPCC in China, according to the company website. The company says it’s the only supplier of NPCC products to the tire industry.
The Reno-based company said in court papers that unsecured creditors should expect to see a recovery from the reorganization.
The 20 largest unsecured creditors are owed about $167.5 million. Bank of New York Mellon Corp. (BK) is the biggest, acting as the indenture trustee for 6.5 percent noteholders owed about $130 million, court documents show. The bank is also listed as the trustee for 6 percent noteholders owed about $36.3 million. Fifteen of the 20 creditors are listed as owed an “unknown” amount.
ShengdaTech fell 4 cents, or 6.4 percent, to 59 cents today in over the counter trading. The stock has dropped 88 percent this year, according to Bloomberg data.
The case is In re ShengdaTech Inc., 11-52649, U.S. Bankruptcy Court, District of Nevada (Reno).
To contact the reporter on this story: Michael Bathon in Wilmington, Delaware, at mbathon@bloomberg.net.
To contact the editor responsible for this story: Stephen Farr at sfarr@bloomberg.net
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