UPDATE 1: Trinseo Prepares to File Chapter 11 as Soon as This Weekend

Wed May 06, 2026 03:00 PM ET: Trinseo is preparing to file for chapter 11 bankruptcy as soon as this weekend, according to sources.

A filing may be delayed, the sources said.

The synthetic rubber, plastics and latex binders manufacturer recently extended the expiration dates of some waivers in relation to its debt facilities to May 13 and May 14 from May 6 and May 7, respectively.

The company secured a $50 million incremental superpriority facility on April 10 and immediately drew down $10.4 million to fund operations after missing roughly $38 million in interest payments earlier this year.

Trinseo was delisted from the NYSE on March 30 for failing to maintain a minimum market capitalization.

Trinseo and the advisors involved did not respond to requests for comment. PJT Partners declined to comment.

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Original Story 4:47 p.m. UTC on Feb. 10, 2026

Trinseo Weighing Options, Including Chapter 11, to Restructure Debt

Publicly listed specialty materials provider Trinseo is weighing restructuring options, including a potential bankruptcy filing, as the company contends with ongoing operational woes, liquidity pressures and high leverage, according to sources.

Octus previously reported that Trinseo is being advised by Latham & Watkins, Centerview Partners and FTI Consulting ahead of a possible debt restructuring. Certain lenders to the pari-plus loan are working with Paul Hastings and PJT Partners, while some lenders to the opco loan are advised by Gibson Dunn.

The company’s capital structure and at least four ad hoc lender groups, following two notable maneuvers in 2023 and 2024, could make a restructuring on an out-of-court basis difficult, the sources said.

The average price of Trinseo’s $1.2 billion pari-plus term loan due May 2028 was indicated at 77/79, down from 85/92 a month ago, while the opco existing term loan is indicated at 23, up from 10/13 a month ago, according to Solve. Trinseo’s stock is currently trading at $0.46.

Last month, Trinseo disclosed that the compensation committee of its board of directors approved one-time conditional retention bonus awards for the company’s named executive officers, or NEOs. In December, Trinseo received a notice of noncompliance with the New York Stock Exchange’s continued listing requirements.

In November 2025, Trinseo was downgraded to CCC from CCC+ by S&P Global Ratings, which said that it “anticipate[s] macroeconomic headwinds and demand uncertainty will persist over the next 12 months.”

“Trinseo derives its earnings from cyclical end markets, including autos, building and construction, and consumer durables – the conditions in these end markets remain challenged by weak demand stemming from global tariff uncertainty and changing customer purchasing patterns,” the ratings agency said.

“We expect continued elevated leverage and negative free operating cash flow (FOCF) over the forecast period. Trinseo debt leverage stood at about 13x for the 12-months ended Sept. 30, 2025, and we expect it will reach about 15x by the end of the year,” S&P added. “Given our forecast that its key end markets will remain challenged over the next 12 months, we anticipate the company’s debt leverage will also stay elevated over the next 12-24 months.”

“Additionally, we anticipate Trinseo will generate materially negative FOCF during this period, which we expect will reduce its current liquidity,” S&P said. “Therefore, absent any material improvement in its end-market demand or the sale of its stake in the Americas Styrenics joint venture (JV), we don’t anticipate the company will be able to successfully refinance its super Holdco debt maturing in 2028.”

Trinseo noted that it continues to be pressured by excess supply from Asia. CEO Frank Bozich stated during the company’s third-quarter 2025 conference call that the chemical market experienced sharp increases in imports of Asian polymers into the United States and Europe in the beginning of the first quarter, which Bozich believes was a reaction by Asian producers to fill supply chains in the United States ahead of President Donald Trump’s tariffs announcement in early April, along with a redirection of trade flows to Europe from Asia because of slowing demand in China.

An estimate of the company’s capital structure as of Sept. 30, 2025, is shown below:

An estimate of CLOs with the largest exposure is shown below:

Trinseo and the advisors involved did not respond to requests for comment.