Chemtura Corp (GREY:CEMJQ)

May 25, 2010

PHILADELPHIA--(BUSINESS WIRE)--Chemtura Corporation, debtor-in-possession , announced today that it is in active and ongoing discussions with its Official Unsecured Creditors Committee and Official Equity Committee in an effort to reach a consensual Chapter 11 plan of reorganization. Additionally, today Chemtura said it is finalizing an agreement with an existing ad hoc committee of bondholders on confidentiality terms that will allow Chemtura's largest bondholders to engage in direct negotiations with the Company regarding the terms of a Chapter 11 plan. Chemtura is hopeful that it will successfully bring together the interests of all its stakeholders in a consensual plan of reorganization, which will permit an exit from Chapter 11 in the near term, thereby maximizing value for all of them.

As currently contemplated, the plan of reorganization will provide for emergence of Chemtura from Chapter 11 and continuation of all worldwide operations of Chemtura and its subsidiaries. The plan as currently contemplated will specify treatment for funded debt obligations, trade claims and litigation claims, including providing treatment for diacetyl litigation claims in an agreed or judicially estimated amount. Chemtura also expects that the plan will provide for payment of creditors in the form of cash or common stock in a reorganized, publicly traded company. While there can be no guarantee regarding the value or type of recovery available to any class of creditors or interest holders under the plan, it is anticipated that creditors will be paid at or near the full value of their claims and there may well be recovery available for holders of Chemtura's common stock. Chemtura continues to discuss the specifics of the plan with its stakeholders, including the valuation of reorganized Chemtura, the specific form of consideration that will be available to various types of constituencies and the funding of such consideration.

Chemtura's Chief Executive Officer, Craig Rogerson, commented, "Our intent is to emerge from Chapter 11 as quickly and efficiently as possible. We believe that filing a plan of reorganization with the support of all of our major constituencies is the best way to accomplish this goal. Chemtura intends to file a plan of reorganization by June 17, and accordingly intends to file a motion to extend its exclusive rights to file a Chapter 11 plan, and solicit votes thereon, in order to facilitate the Chapter 11 process."

For Chemtura to emerge from its Chapter 11 proceedings, a plan of reorganization will have to be confirmed by the bankruptcy court after solicitation of votes thereon. The plan of reorganization is expected to include closing conditions that will need to be satisfied before emergence. This press release is not a solicitation of an acceptance or rejection of any future Chapter 11 plan within the meaning of section 1125 of the Bankruptcy Code.