Mississippi Chemical files for Chapter 11

By Carlise Newman

Chicago, May 15 - Mississippi Chemical Corp. filed for Chapter 11 reorganization in the U.S. Bankruptcy Court in Jackson, Miss. Thursday and said it obtained $37.5 million in debtor-in-possession financing.

As a result of the filing the company did not make the semi-annual interest payment due Thursday on its 7¼ % senior notes.

Mississippi Chemical's management is in discussions with lenders under the company's existing senior secured credit facility and an informal committee of noteholders regarding possible reorganization structures.

The Yazoo City, Miss. crop nutrient company's existing lenders, led by Harris Trust and Savings Bank, will provide DIP financing of up to $37.5 million, subject to approval by the Bankruptcy Court.

Mississippi Chemical has hired Gordian Group LLC to assist it in researching financial restructuring alternatives, including stand-alone recapitalization and third-party investments.

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