Penn Specialty Chemicals, Inc.
Founded in 1999, Penn Specialty Chemicals, Inc. (‘Penn’ or the ‘Company’) is one of the world’s leading producers and marketers of furfural and furan-based fine chemicals and solvents. The Company holds a distinctive portfolio of value added, high growth products that serve a broad range of industry end uses in the pharmaceutical, agricultural chemical and industrial markets. Penn’s portfolio is based on feedstock from renewable resources and includes products with environmentally friendly properties.
The Company suffered liquidity constraints due to the expiration of a significant tolling agreement and shifting political regulations in China where Penn maintains operations. These conditions impeded the Company from appropriately marketing its products and funding incremental research and development.
Penn and SSG moved quickly to explore strategic alternatives, including a sale or refinancing of the Company. After conducting a broad sale process and negotiating with several strategic and financial partners, SSG concluded that the greatest value for Penn’s stakeholders would be achieved by refinancing the Company’s debt. This solution also allowed Penn’s stakeholders to retain equity in the Company. The restructuring and recapitalization was consummated in December 2007.