Gordian Group acted as financial advisor to MCC in connection with its bankruptcy reorganization, which included raising in excess of $350 million of debt and the successful sale of its potash business, spin off of its phosphates business and merger of its nitrogren business with Terra Industries, pursuant to a plan of reorganization valued at over $300 million.
Mississippi Chemical Corporation
CLIENT: Mississippi Chemical Corporation ("MCC")
MCC was a $500 million, publicly traded agricultural and industrial chemical company primarily engaged in the production of nitrogen-based fertilizer products. Due to changes in market conditions, the Company’s financial performance began to deteriorate. As a result of diminished performance, MCC faced a liquidity crisis.
MCC filed for Chapter 11 with over $350 million of net debt in the form of senior secured facilities and unsecured obligations. Gordian Group was engaged to advise on the restructuring of indebtedness and other matters. We were instrumental in:
- Arranging Debtor-in-Possession financings in the aggregate amount of $360 million
- The refinancing of certain of MCC’s prepetition secured debt in Chapter 11
- The marketing and subsequent sale through the 363 process of the Company’s potash business for more than $25 million
- The successful reorganization and spin off of MCC’s phosphates business, and
- The acquisition of MCC’s nitrogen business in a merger with Terra Industries, Inc., pursuant to MCC’s plan of reorganization in a deal valued at over $300 million
Gordian Group assisted in crafting a plan of reorganization and sale (implemented in Chapter 11) that resulted in recoveries to old equity despite the fact that the Senior Noteholders recovered only about 70%.