Trinseo to cut $2 billion in debt through pre-packaged bankruptcy

(P1) Specialty material solutions provider Trinseo PLC announced a plan to cut approximately $2.0 billion in debt by entering a Restructuring Support Agreement with a majority of its lenders. The company said on May 13 it will implement the deal through a pre-packaged Chapter 11 filing in the coming weeks, aiming for an expedited emergence.

(P2) "With the support of our lenders, this agreement marks an important step forward to strengthen our balance sheet so we can continue to operate our business uninterrupted," Frank Bozich, President and Chief Executive Officer of Trinseo, said. "We look forward to emerging from this process as a stronger organization, well-equipped to meet the needs of our partners around the world."

(P3) The restructuring will be funded by approximately $158 million in debtor-in-possession financing and a $150 million accounts receivable facility. The agreement will reduce Trinseo’s annual interest expense by approximately $140 million. Under the terms of the deal, existing lenders will receive 100 percent of the equity in the reorganized company, wiping out current shareholders.

(P4) By taking this step, Trinseo aims to create positive free cash flow and establish a stronger financial foundation for its long-term strategy without impacting employees, customers, or suppliers. The company, which reported $3.0 billion in 2025 net sales, expects the Chapter 11 filing to be limited to certain U.S. and non-operating non-U.S. affiliates, allowing global operations to continue as normal.

The Advisors

Trinseo is being advised by Latham & Watkins LLP and Hunton Andrews Kurth LLP as legal counsel, with Centerview Partners LLC as investment banker. An ad hoc group of senior secured lenders is advised by Paul Hastings LLP and PJT Partners, while another term lender group is advised by Gibson, Dunn & Crutcher LLP and Lazard Frères & Co.

This article is for informational purposes only and does not constitute investment advice.