Surprising miss Kary did not break this one (maybe former Goldman restructuring honcho now K&E restructuring honcho Jaime Sprayregen finally "plugged" his leak), instead this piece of news comes compliments of Debtwire. According to "two sources familiar with the situation" Chemtura has hired Kirkland & Ellis as legal counsel and Lazard as financial advisor. Seeing how the news of K&E's retention with its implicit "pre-pack or pre-negotiated bankruptcy" advisor role must mean (at least according to Bloomberg) an immediate bankruptcy, it probably makes sense the steer clear of this one. Although seeing how it's stock is already trading at $0.33, it may be tough not to do so. With CDS trading over 4000 bps wider on running spread, the market seems to have already made up its mind about the company's viability prospects.
Further according to Debtwire, CEM's bondholders are preparing an organizational call for later this week. How they plan to generate recoveries from the leveraged chemical manufacturer is a mystery to us.
What is not a mystery is that Nelson Peltz' Trian Partners has lost over $200 million on his investment in Chemtura. He may be well advised to use some of CEM's proprietary flame retardant technology on his portfolio return numbers which will soon be up in flames.
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