M & G USA Corporation

M & G USA Corporation is on a liquidation path, with the latest sourced restructuring posture reflected in the debtors’ Amended Chapter 11 Plan of LiquidationDkt. 2115, a debtor-sponsored third amended joint plan that classifies claims across 11 classes rather than proposing a go-forward operating reorganization.

The case began with the October 30, 2017 chapter 11 filing by M & G USA and affiliated debtors, followed by Dennis Stogsdill’s first-day declaration describing a global PET and chemicals group whose liquidity crisis centered on the unfinished Corpus Christi PTA/PET project. That project had grown from an originally budgeted $1.1 billion build to $1.86 billion already spent, with another $505 million estimated to complete, while remaining less than 85% finished and burdened by more than $196 million in mechanics’ liens. The filing also followed operating stress outside Texas: the Altamira, Mexico PET facility shut down on September 5, 2017 because of raw material shortages, which contributed to the October 22, 2017 closure of the Apple Grove plant that depended heavily on Altamira sales, according to the Stogsdill First Day DeclarationDkt. 3.

The capital structure left little room for an ordinary balance-sheet fix. As of the petition date, the debtors reported nearly $1.7 billion of debt across 11 financing arrangements, including a $436 million Banco Inbursa Corpus Christi construction loan, a $435 million DAK Americas capacity reservation agreement, and substantial secured, unsecured, and intercompany obligations; the same first-day record also describes an estimated $1.27 billion of intercompany payables and $556 million of intercompany receivables. The debtors entered chapter 11 with a proposed $100 million senior secured DIP facility from Control Empresarial de Capitales, an Inbursa affiliate, carrying sale and case milestones intended to preserve value while the estates pursued restructuring alternatives through the .