Trinseo to file voluntary petitions under Chapter 11

Trinseo, a publicly listed specialty materials provider, is preparing to file for Chapter 11 bankruptcy as soon as this weekend, according to multiple sources. The company has been actively exploring restructuring options amid ongoing operational challenges, liquidity pressures, and high leverage. Trinseo recently extended the expiration dates of some debt waivers to May 13 and May 14, and secured a $50 million incremental superpriority facility on April 10 to fund operations after missing approximately $38 million in interest payments earlier this year.

The company was delisted from the New York Stock Exchange on March 30 for failing to maintain the minimum market capitalization requirement. Trinseo's stock is currently trading at $0.46, and its $1.2 billion pari-plus term loan due in May 2028 has seen its average price decline to 77/79 from 85/92 a month ago.

S&P Global Ratings downgraded Trinseo to CCC from CCC+ in November 2025, citing macroeconomic headwinds and demand uncertainty in key end markets such as autos, building and construction, and consumer durables. The ratings agency expects Trinseo's debt leverage to remain elevated, reaching approximately 15x by the end of 2026, and anticipates continued negative free operating cash flow over the next 12–24 months.

Trinseo has been advised by Latham & Watkins, Centerview Partners, and FTI Consulting in connection with a potential restructuring, while lenders are represented by multiple law firms. The complexity of the company's capital structure and the involvement of at least four ad hoc lender groups suggest that an out-of-court restructuring may be difficult.

The company's decision to pursue Chapter 11 comes amid broader challenges, including excess supply from Asian producers and weak demand in key markets. Trinseo's CEO has attributed increased Asian polymer imports to trade flow shifts linked to U.S. tariff policies and slowing demand in China.