Ascend Performance Materials: From $5 Billion IPO to Chapter 11

Ascend Performance Materials Holdings Inc., a fully-integrated producer of nylon 6,6 (PA66), filed for chapter 11 bankruptcy protection on April 21, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas after PA66 prices fell approximately 45% from their COVID-era peak and Chinese producers expanded capacity. The Houston-based company, which SK Capital Partners acquired from Solutia for $50 million in 2009 and later considered taking public at a $5 billion valuation in December 2021, entered bankruptcy with approximately $2 billion in funded debt and average annual revenue of $2.7 billion. With $900 million in DIP financing, Ascend emerged from chapter 11 on December 19, 2025—about eight months after filing—with term loan lenders converting their claims to equity while general unsecured creditors and former shareholders received nothing. The restructuring ended SK Capital's 16-year ownership and appointed Patrick Schumacher as CEO of the reorganized company.

Debtor(s)	Ascend Performance Materials Holdings Inc.
Court	U.S. Bankruptcy Court, Southern District of Texas
Case Number	25-90127 (lead case)
Judge	Hon. Christopher M. Lopez
Petition Date	April 21, 2025
Confirmation Date	December 9, 2025
Effective Date	December 19, 2025
DIP Facility	~$900 million total
New Money	$250 million ($150M interim)
Total Funded Debt	~$2.0 billion
Average Annual Revenue	$2.7 billion
Employees	~2,200 globally
New CEO (Post-Emergence)	Patrick Schumacher

Company Background

Ascend traces its roots to 1953 when Chemstrand Corporation established the first fully-integrated U.S. nylon plant in Pensacola, Florida, as a joint venture between Monsanto Chemical Company and American Viscose Corporation to produce nylon fibers licensed from DuPont. The business changed hands multiple times over the following decades. Monsanto acquired Chemstrand in 1961, then spun off its industrial chemicals division into Solutia Inc. in 1997. The nylon business remained under Solutia until 2009, when SK Capital Partners acquired it for $50 million and renamed the company Ascend Performance Materials. All 3,000 employees were retained in the transaction.

SK Capital ownership. SK Capital Partners, a New York-based private equity firm founded in 2007 that focuses on specialty materials, ingredients, and life sciences sectors, owned Ascend for 16 years. By 2015, Ascend had become the No. 5 private company in Houston. By December 2021, SK Capital was considering an IPO that would have valued the company at approximately $5 billion—about a 100x increase from the acquisition price. The IPO did not proceed.

Business operations. At filing, Ascend reported $1 billion to $10 billion in assets and liabilities and operated as a fully-integrated PA66 producer with operations across the entire value chain. The company's headquarters were located in Houston, Texas, with 11 manufacturing facilities across the United States, Mexico, Europe, and Asia. Key U.S. facilities included Decatur, Alabama; Pensacola, Florida; and Chocolate Bayou, Texas. Approximately 2,200 employees worked globally, and international subsidiaries were excluded from bankruptcy proceedings.

Path to Chapter 11

PA66 Market Decline.

The nylon 6,6 market experienced a downturn following the pandemic, with average market prices dropping approximately 45% from COVID-era peaks, according to the First Day Declaration. EBITDA declined approximately 56% since 2022, while gross profit margin compressed by nearly 4%. Global economic conditions—including destocking, inflation, labor shortages, and supply chain disruptions—slowed recovery in key end markets including automotive and consumer goods, leaving EBITDA margins near their lowest level in almost a decade.

Chinese Competition and Overcapacity.

Capacity expansion by Chinese producers changed the competitive landscape. In 2023, global capacity to produce PA66 was 3.7 million tons per year. Major Chinese expansion projects then came online or were announced, including Ko Yo Chem's 800 ktpa facility in Sichuan, Gulei Petrochemical's 400 ktpa plant in Fujian, and Eversun Jinfei bringing 600 ktpa online before the end of 2026. By 2025, the PA66 sector faced a prolonged period of oversupply, with more than 4 million tons per annum of additional capacity expected—more than doubling global PA66 availability.

Chinese producers adopted pricing strategies that included selling at cash losses, leaving Ascend to choose between losing customers or cutting prices.

Uneconomic Long-Term Contracts.

Ascend was locked into long-term, take-or-pay contracts for certain chemical intermediates entered into when market prices were higher. Under 2025 trough pricing, these contracts forced the company to sell at a loss, reducing margins.

Operational Disruptions.

Two events in late 2024 added liquidity pressure.

Wilson Lock closure (September 2024). The main chamber of Wilson Lock on the Tennessee River closed September 25, 2024, after dive inspections revealed cracks in lock gates on both the land and river sides. The 1959-era lock structure had exceeded its 50-year design life. The closure forced vessels through a smaller auxiliary lock (itself turning 100 years old in 2025), creating shipping delays of up to 9 days and adding 16-24 additional hours of locking time for typical 15-barge tows. The closure disrupted barge transport for Ascend's operations, affecting the movement of raw materials and finished products.

Pensacola facility fire (December 22, 2024). A major fire was reported at Ascend's Gonzalez facility just before 5:30 PM on Sunday, December 22, 2024. A large column of thick, dark smoke was visible for miles. Multiple Escambia County Fire Rescue units responded, and the fire was contained with no injuries—all Ascend personnel were safely accounted for. The fire shut down the nylon complex for approximately two months and added pressure to liquidity.

Liquidity Crisis and Accounts Payable Wall.

By late February 2025, Ascend faced accounts payable exceeding $110 million, causing vendors to demand cash-in-advance, tighten credit terms, or cease supplying essential goods and services entirely.

Pre-Filing Bridge Financing.

Ascend secured bridge financing in early 2025. On March 7, 2025, the company obtained a $40 million super-senior bridge term loan. By early April 2025, the bridge loan was upsized to a total of $120 million. An ad hoc group of term loan lenders, represented by Gibson Dunn and Evercore, provided the capital while bankruptcy preparations advanced.

Capital Structure at Filing

Ascend entered chapter 11 with approximately $2 billion in total funded debt (principal and accrued interest), reflecting a leveraged capital structure amid lower market pricing.

Market impact. According to industry reporting, Ascend's first-lien loan depreciated from 85 cents on the dollar to approximately 47 cents. The chapter 11 filing affected $639 million in CLO holdings, affecting secured lenders and CLO portfolios exposed to the credit.

DIP Financing Structure

Ascend entered chapter 11 with committed DIP facilities totaling approximately $900 million in debtor-in-possession financing, as detailed in the DIP Motion. The company initially announced commitment for $250 million in new DIP financing from its lenders at filing.

The DIP ABL Facility represented a roll-up of the prepetition ABL Facility, providing continued access to working capital without requiring new money from ABL lenders. The DIP Term Loan Facility included $250 million in new money commitments, with $150 million available on interim court approval. Wells Fargo Capital Finance, LLC served as DIP ABL Agent, with Greenberg Traurig LLP as counsel. The Ad Hoc Group of Term Loan Lenders provided the DIP term loan financing, represented by Gibson Dunn & Crutcher LLP as counsel.

Plan of Reorganization

Plan Structure and Debt-for-Equity Conversion.

The plan confirmation on December 9, 2025, allowed Ascend to emerge with less debt and a revised capital structure. The Confirmation Order approved the Plan of Reorganization, which centered on converting secured term loan claims to equity in the reorganized company, while canceling general unsecured claims and existing equity interests.

Key plan features included:

• Debt-for-equity conversion: Term Loan Lenders received equity in the reorganized company in satisfaction of their claims
• DIP ABL roll-up: DIP ABL Claims were paid in full in cash or rolled into an Exit ABL Facility on a dollar-for-dollar basis
• Exit financing: New facilities established to fund ongoing operations post-emergence
• Management Incentive Plan: Established for reorganized company leadership
• Wipeout of junior claims: General unsecured creditors and equity holders received nothing

Classification and Treatment Summary.

General unsecured creditors (Class 5) received no distribution, and secured term loan lenders received equity rather than cash. Former equity holders in Ascend Parent, including SK Capital Partners' ownership stake, were extinguished.

Key Plan Dates.

The Disclosure Statement received court approval in October 2025, keeping the company on track to emerge from chapter 11 in Q4 2025 as projected.

Contested Matters and Disputed Issues

MasTec Industrial Corporation Dispute.

MasTec Industrial Corporation filed an emergency motion to compel assumption of a construction contract shortly after the bankruptcy filing, seeking assurance that work would continue. MasTec subsequently filed a relief from stay motion on August 21, 2025 (filed under seal). The parties reached a settlement that was approved by the court on November 24, 2025, resolving the matter in advance of plan confirmation.

Kinder Morgan Sublease.

Kinder Morgan Tejas Pipeline LLC filed a motion to compel assumption of a sublease agreement, seeking certainty regarding the continued use of pipeline assets. The sublease assumption was approved October 1, 2025, with the assumption becoming effective in November 2025.

U.S. Trustee Confirmation Objection.

The U.S. Trustee filed a confirmation objection on December 2, 2025, raising issues related to plan compliance with Bankruptcy Code requirements. The objection was resolved at the December 9 confirmation hearing, allowing the court to enter the confirmation order that same day.

Cure Cost Disputes.

Multiple counterparties filed objections to proposed cure amounts for executory contracts and unexpired leases, including Dow Chemical Company, Union Tank Car Company, AITX Leasing, LLC, Memorial Hermann Medical Group, and Thermo Fisher Scientific, Inc. These disputes focused on the amounts required to cure defaults and assume contracts under section 365 of the Bankruptcy Code. The disputes were resolved through negotiation or court determination in advance of plan confirmation.

Professional Retentions

The restructuring involved a team of professional advisors for both the debtors and key creditor constituencies. Kirkland & Ellis LLP served as lead counsel, with FTI Consulting as financial advisor.

Key Timeline

Post-Emergence Outlook

Ascend emerged from chapter 11 on December 19, 2025, with Patrick Schumacher appointed as CEO of the reorganized company. The company emerged with less debt and a revised capital structure. All manufacturing facilities, including the Pensacola plant, continued normal operations throughout the bankruptcy process; the company stated the filing did not mean it was going out of business.

The restructuring ended SK Capital Partners' 16-year ownership of Ascend. Term loan lenders became the new equity owners, having converted approximately $1.07 billion in term loan claims to ownership stakes in the reorganized enterprise. The case ran for about eight months from petition to emergence.

Industry Context: PA66 Overcapacity

From Shortage to Oversupply.

The nylon 6,6 industry underwent a shift from shortage to oversupply between 2021 and 2025. During the COVID-era demand surge in 2020-2021, PA66 experienced capacity constraints and elevated pricing that encouraged investment in new production facilities worldwide. Beginning in 2023-2024, Chinese capacity expansion accelerated, and by 2025, more than 4 million tons per annum of new capacity was expected—more than doubling global PA66 availability.

Competitive Dynamics for Western Producers.

Chinese producers invested in domestic PA66 capacity, reducing dependence on imports while creating export overcapacity. These producers adopted pricing strategies that included selling at cash losses to gain market share globally. The capacity expansion wave increased competitive pressure for producers with higher cost structures and substantial debt loads.

Frequently Asked Questions

What is Ascend Performance Materials and why did it file for bankruptcy?

Ascend is a fully-integrated producer of nylon 6,6 (PA66), used in products ranging from apparel and carpets to electric vehicles and solar systems. The company filed chapter 11 after PA66 prices fell approximately 45% from COVID-era peaks, Chinese competition intensified with capacity additions, and operational disruptions from a September 2024 lock closure and December 2024 fire added to liquidity challenges.

How much debt did Ascend have at filing?

Ascend entered bankruptcy with approximately $2 billion in total funded debt, including a $1.07 billion term loan facility, $348 million ABL facility, $150 million bridge facility, and $350 million in capital leases and sale-leasebacks.

What happened to unsecured creditors?

General unsecured creditors (Class 5) received no distribution under the Plan of Reorganization. Their claims were cancelled without recovery, and secured term loan lenders converted their claims to equity rather than receiving cash.

Who owns Ascend after emergence?

Term loan lenders converted their approximately $1.07 billion in debt claims to equity in the reorganized company, effectively becoming the new owners. SK Capital Partners' 16-year ownership ended with the restructuring.

What was the DIP financing structure?

Ascend secured approximately $900 million in DIP financing, including a $500 million DIP ABL (roll-up of prepetition ABL) and a $400 million DIP Term Loan with $250 million in new money. The new money portion was available during the case.

Did operations continue during bankruptcy?

Yes. All manufacturing facilities, including the Pensacola plant, continued normal operations throughout the bankruptcy process. The company emphasized that this was a financial restructuring, not a liquidation. International subsidiaries were excluded from the proceedings entirely.

What caused the Wilson Lock disruption?

The main chamber of Wilson Lock on the Tennessee River closed September 25, 2024, after divers discovered cracks in both land and river side lock gates. The 1959-era lock had exceeded its 50-year design life. The closure forced vessels through a smaller auxiliary lock, adding 16-24 hours to transit times and creating delays of up to 9 days for shipping operations.

How long did the case take?

Ascend moved from petition (April 21, 2025) to emergence (December 19, 2025) in approximately 8 months, meeting the DIP milestones requiring plan confirmation within 120 days and emergence within 130 days.

What was SK Capital's acquisition history with Ascend?

SK Capital Partners acquired the nylon business from Solutia for $50 million in cash in April 2009. By December 2021, SK Capital was considering an IPO that would have valued the company at approximately $5 billion—about a 100x increase from the acquisition price. The IPO did not proceed.

Who is the new CEO?

Patrick Schumacher was appointed as CEO upon Ascend's emergence from chapter 11 on December 19, 2025, with a reduced debt load and new equity ownership by former term loan lenders.

Who is the claims agent for Ascend Performance Materials?

Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

Read more chapter 11 case research on the ElevenFlo blog.