Petrochemical firm to be shut down in US after US regulators reject its controversial plan to pump carbon dioxide into the atmosphere
Petrochemistry giant Kolmar PetroChemics has filed for bankruptcy protection in the United States.
Kolmar has said it will shut down operations in the US and Mexico after regulators rejected its proposed carbon dioxide-emitting pipeline.
The company said in a filing that it had failed to meet conditions that would have kept it solvent in the event of an emergency.
Kolor was one of the world’s largest petrochemist firms, with operations in more than 100 countries.
Its main operations were in the Houston and Corpus Christi area, with about 50 employees and $50m in annual revenue.
In a statement on its website, the company said it was working with its creditors to come up with a plan to meet the requirements of the bankruptcy process.
The bankruptcy filing said that if the company fails to meet its obligations to the United State and its creditors, it will be subject to Chapter 11 protection and the termination of its rights to obtain federal loan guarantees.
Kolinars chief executive officer, John Fritsch, said in the statement that the company had “received an overwhelming response” to the company’s plan to shut down its operations.
“We know that the US courts have rejected many of the companys claims in this matter and that the courts have found that the proposal would have been unlawful and unenforceable,” he said.
“While we have been unable to make any progress on this issue, we will continue to work with our creditors to find a solution that works for us.”
Kolmars chief financial officer, Kevin McGlade, said that the bankruptcy filing did not specify what the bankruptcy plan would look like.
Kolkars’ filing said it had been forced to shut its facilities due to an ongoing drought in Texas.KOLMAR PETROCHEMICAL COMPANY is facing a bankruptcy filing in the UK, where it has operations.
In the US, the Department of Justice announced on Friday that the Food and Drug Administration (FDA) had rejected Kolmar’s plan, saying it would not be in compliance with US environmental law.
In February, the FDA said the company could not meet the conditions of its loan guarantee, saying the company was “not adequately managing its risk and exposure”.
The company also said it faced legal problems in the Philippines, China and Russia.
Kollmars operations in Mexico City were also at risk, as a result of the drought.
The firm said it would have to close its two main facilities in the country and close all of its facilities in Canada and Australia.
The US Department of Energy said on Thursday that Kolmar would have until July 1 to file for bankruptcy.
Kopecollects chief executive, Mark Gailman, said the bankruptcy could impact the company in other countries too.
“Kolmer Petrochems business is dependent on international business.
The closure of its operations in Europe will impact the global business of Kolmar and it’s competitors in Canada, the US (and) Australia,” he told reporters in the British capital.
Koltz said it understood that the decision to pursue bankruptcy was in the interests of the business.
“Our main priority is to meet our obligations to our shareholders and the American taxpayer,” he added.
“The bankruptcy process is not about whether or not we can survive.
The bankruptcy process and the process for filing for bankruptcy is about protecting our business interests.”