Judge backs settlement over West Chicago radioactive cleanup plan

Tronox Inc., the world's third-largest producer of the white pigment titanium dioxide, received bankruptcy court approval yesterday for a settlement with the U.S. government over the cleanup of radioactive materials around West Chicago.

In March Tronox mostly defeated a motion to dismiss a lawsuit in bankruptcy court against former parent Kerr-McGee Corp. and Anadarko Petroleum Corp., which acquired Kerr-McGee for $18.4 billion in August 2006. If successful, the suit would recover environmental remediation costs Tronox was given when spun off from Kerr-McGee in March 2006.

Tronox said it's trying to broker a consensual reorganization plan.

The Chapter 11 petition by Tronox in January 2009 listed assets of $1.56 billion against debt totaling $1.22 billion. Debt includes $213 million on a secured term loan and revolving credit, $350 million in 9.5 percent senior notes, and a $40.7 million accounts receivable securitization facility.

Tronox's products are used in paints, coatings, plastics, paper and consumer products. The operations outside of the U.S. did not file.

The case is In re Tronox Inc., 09-10156, U.S. Bankruptcy Court, Southern District of New York (Manhattan).