Trinseo could be headed towards Chapter 11 as the specialty chemicals company is in danger of running out of liquidity with limited apparent options to rework its capital structure, sources told 9fin. The likely timing would be March, although discussions are ongoing and remain fluid, these sources said.
Creditors who led Trinseo’s previous LME recently brought on Paul Hastings and PJT Partners, who have been advising them on a potential bankruptcy filing, according to a source. After completing LMEs in 2023 and 2025, the company appears to have few remaining options to retool its capital structure out of court, sources said.
Trinseo has tapped Latham & Watkins as a restructuring counsel, Ropes & Gray as finance counsel and Centerview Partners as restructuring banker, 9fin previously reported. It also expanded its board of directors on 20 January to add two new members with restructuring experience, Carol Flaton and Jill Frizzley.
Meanwhile, a group of term lenders banded together with Gibson Dunn, revolving lenders with White & Case and stub bond holders with Paul Weiss.
The chemical sector has been strugglingdue to competition with Chinese and Asian manufacturers, uncertainty caused by US tariffs and slowdowns in...
