RPM units file bankruptcy; company looks to halt asbestos lawsuits

By Caroline Salls

Pittsburgh, June 1 - RPM International Inc. subsidiaries Specialty Products Holding Corp. and Bondex International Inc. filed for Chapter 11 bankruptcy Monday in the U.S. Bankruptcy Court for the District of Delaware.

RPM International filed a lawsuit asking the court to keep thousands of asbestos product claimants from prosecuting lawsuits during the bankruptcy proceeding.

The company said it is "fully committed to negotiating with defendants to establish an [asbestos claims] trust" under a plan of reorganization.

In conjunction with the bankruptcy filing, Specialty Products has requested court approval of a $40 million debtor-in-possession facility.

Wachovia Capital Finance Corp. (New England) is the DIP loan agent.

The facility will mature in three years.

Interest on Libor rate loans will be Libor plus 250 basis points, and interest on Base rate loans will be Base rate plus 150 bps.

The company is seeking interim access to $5 million of the DIP financing.

According to court documents, Specialty Products has $100 million to $500 million in both assets and debt.

The company did not specify how much its largest unsecured creditors were owed.

RPM produces specialty chemicals through its subsidiaries and is based in Medina, Ohio. The subsidiaries' Chapter 11 case number is 10-11780.

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