TPC Group Announces Extension to Forbearance Agreement

HOUSTON (March 16, 2022) – 

As previously disclosed, TPC Group (the “Company”) is in ongoing, constructive discussions with a group representing approximately 90% and approximately 80% of the Company’s two series of senior secured notes (the “notes”) (the “Ad Hoc Group”), respectively, as well as other economic stakeholders, and that the Ad Hoc Group had agreed to forbear from exercising remedies relating to the default caused by the failure to make the February 2, 2022 interest payments on the notes. As a result, the Company elected not to make $53 million in total interest payments due on the notes on February 2, 2022.

The forbearance agreement, which was initially effective until March 18, 2022, has been extended by the Ad Hoc Group and the Company until April 18, 2022. This additional period will allow TPC Group to continue engaging in constructive discussions with the aim of strengthening the Company’s capital structure and positioning the Company to be a stronger, more competitive business.

Throughout these discussions and the forbearance period, TPC Group will continue to operate as usual, maintaining its vital focus on EHSS performance, reliable and safe operations and providing customers and vendors with the highest quality products and services.

TPC Group has a more than 75-year operating history as a leader in North America across all of its product lines and as the largest independent processor of crude C4. Furthermore, TPC Group is a recognized global leader in producing value-added products and raw materials such as C4 hydrocarbons, and a provider of critical infrastructure and logistics services to petrochemical operators along the Gulf Coast.

The Company is advised by Moelis & Company LLC, Baker Botts L.L.P., Simpson Thacher & Bartlett LLP, and FTI Consulting, Inc. The Ad Hoc Group is advised by Stroock & Stroock & Lavan LLP and Evercore.

About TPC Group

TPC Group, headquartered in Houston, is a leading producer of value-added products derived from petrochemical raw materials such as C4 hydrocarbons, and provider of critical infrastructure and logistics services along the Gulf Coast. The Company sells its products into a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants. With an operating history of 75 years, TPC Group has a manufacturing facility in the industrial corridor adjacent to the Houston Ship Channel and operates product terminals in Port Neches, Texas and Lake Charles, Louisiana.

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