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Positioning Ascend for the Future
About Our Restructuring
Ascend is taking steps to strengthen its balance sheet and position the Company for a stronger future. On April 21, 2025, Ascend announced that, with the support of its lenders, the Company has initiated a Chapter 11 process in the U.S. Bankruptcy Court for the Southern District of Texas. The Chapter 11 process will enable Ascend to deleverage the Company’s balance sheet and continue providing best-in-class materials to nearly 1,650 customers globally. Importantly, our restructuring is limited to Ascend entities located in the U.S., and Ascend’s subsidiaries that are located outside of the U.S. are not included in the Chapter 11 filings.
Importantly, Ascend is open for business and we are operating as usual. We remain committed to providing critical products to our customers, just as we always have. We expect to continue conducting our business in the ordinary course, both in the U.S. and globally.
During this time, Ascend expects to continue:
Manufacturing and delivering high quality performance materials to our customers
Paying our employees as usual, with benefits remaining in place, including health insurance, PTO and 401(k)s
Fulfilling go-forward obligations to vendors for goods and services provided on or after our filing date, April 21, 2025
Remaining focused on safe, stable operations, achieving excellence by accepting zero shortcuts, zero workarounds, and zero tolerance for defects
To Our Customers, Site Guests, and Vendors – Thank you for your continued support and partnership. The actions we are taking now will strengthen our business so we can be an even stronger partner for you.
Additional Resources
Press Release
Ascend Performance Materials Takes Steps to Strengthen Balance Sheet and Position the Company for a Stronger Future
Initiates restructuring process with support from existing lenders to strengthen balance sheet and improve financial foundation
Obtains commitment for $250 million in financing
Continues to operate as usual and provide high-performance materials to customers; shipments and product delivery to continue in normal course
HOUSTON, April 21, 2025 /PRNewswire/ – Ascend Performance Materials (“Ascend” or the “Company”), a leading producer of high-performance and durable engineered materials for everyday essentials and new technologies, announced today that, with the support of its key stakeholders, it has initiated Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. The Chapter 11 process will enable Ascend to deleverage its balance sheet and continue providing best-in-class materials to nearly 1,650 customers globally. Ascend’s subsidiaries that are located outside of the U.S. are not included in the Chapter 11 filings.
With the support of its lenders, Ascend will use the Chapter 11 process to pursue a value-maximizing restructuring transaction that will enable the Company to emerge from Chapter 11 as a healthy, well-capitalized business. The Company will operate as usual throughout the Chapter 11 process and will continue to manufacture and produce high-performance materials that improve the quality of life today and inspire a better tomorrow. In connection with this process, the Company has received a commitment for $250 million in debtor-in-possession financing from its lenders, which is expected to provide the Company with sufficient liquidity to support Ascend throughout the Chapter 11 process. Ascend aims to complete the process in approximately six months.
“Ascend has made significant strides in transforming our business, with a focus on efficiency and driving cost reductions while ensuring that we are able to operate safer than we ever have before,” said Phil McDivitt, President and CEO of Ascend Performance Materials. “Over the last several months, we have been working with our lenders to define the best path forward for Ascend. We expect that the restructuring will substantially reduce Ascend’s funded debt obligations and ensure that we are well-positioned to continue executing on our long-term strategy. We are confident that the Chapter 11 process will put us on a path to becoming an even stronger company with a healthier financial structure and better positioned to continue delivering high-performance materials that improve the lives of our customers.”
He continued, “As we embark on this process, we look forward to continuing to partner with our lenders, who believe in the underlying value and potential of our business and have provided us with funding to support our business throughout the process. We are also grateful to our customers and partners for their ongoing support and to our employees for their hard work and commitment to working safely and supporting Ascend’s other values.”
Ascend is operating as usual throughout this process and does not expect any impact to product availability or customer contracts. The Company remains focused on creating and delivering high quality performance materials for its customers.
Ascend has filed a number of customary “First Day” motions with the Bankruptcy Court seeking approval to support its operations during the Chapter 11 process, including paying employee wages, salaries and benefits without interruption. The Company expects to receive approval of these motions in the coming days. Ascend intends to pay vendors and suppliers in full for goods and services provided on or after the filing date in accordance with the Bankruptcy Code.
Additional Information
Additional information about Ascend’s restructuring is available at www.ascendmaterials.com/strengtheningascend. Bankruptcy Court filings and other information regarding the case can be found at https://dmepiq11.com/Ascend or by contacting Epiq, the Company’s noticing and claims agent, at (888) 890-9917 (for toll-free U.S. calls) or +1 (971) 385-8728 (for tolled international calls).
Ascend is advised in this matter by Kirkland & Ellis LLP as legal counsel, FTI Consulting as financial advisor, and PJT Partners as investment banker. The ad hoc group of first lien lenders to the Company is advised by Gibson, Dunn & Crutcher LLP as legal counsel and Evercore Group L.L.C. as investment banker.
About Ascend Performance Materials
Ascend Performance Materials makes high-performance materials for everyday essentials and new technologies. Our focus is on improving quality of life and inspiring a better tomorrow through innovation. Based in Houston, Texas, and with regional offices in Shanghai, Brussels and Detroit, we are a fully integrated material solutions provider with global manufacturing facilities in North America, Europe and Asia. Our global workforce makes the materials used to make safer vehicles, cleaner energy, better medical devices, smarter appliances and longer-lasting apparel and consumer goods. We are committed to safety, sustainability and the success of our customers and our communities.
Ascend Media:
Osama Khalifa
Rachel Chesley / Rose Temple
FAQs
General
What did Ascend announce?
On April 21, 2025, with the support of our lenders, we initiated a Chapter 11 process in the U.S. Bankruptcy Court for the Southern District of Texas. The Chapter 11 process will enable Ascend to deleverage our balance sheet and continue providing best-in-class materials to our nearly 1,650 customers globally.
Ascend will use the Chapter 11 process to pursue a value-maximizing restructuring transaction that will enable the Company to emerge from Chapter 11 as a healthy, well-capitalized business.
Why is Ascend taking this action? What does this announcement mean for the Company?
Over the last few years, Ascend has made significant strides improving our business, with a focus on efficiency and driving cost reductions. However, our underlying financial structure and debt load continue to present challenges that impact the business. Over the last several months we’ve been in active and productive conversations with a group of our existing lenders and determined that the Chapter 11 process is the best approach to reduce our debt and position Ascend for a stronger future.
We are operating as usual throughout this process and expect to conduct business in the ordinary course, both in the U.S. and globally. We are confident that this process will put us on a path to becoming an even stronger company with a healthier financial structure, better positioned to continue to manufacture and produce high-performance materials that improve the quality of life today and inspire a better tomorrow.
Does this mean the Company is going out of business?
No. This is not a liquidation, or what you might think when you hear the word “bankruptcy.” The Chapter 11 process will enable us to operate as usual while we work in the background to right-size our financial structure. It does not mean we are going out of business—we remain committed to providing critical products to our customers, just as we always have, as we work through this process.
What is Chapter 11? How will the Chapter 11 process impact day-to-day operations?
“Chapter 11” refers to the chapter of the U.S. Bankruptcy Code that outlines a process for businesses to reorganize and address financial challenges while continuing to operate. Importantly, the Chapter 11 process allows companies to maintain normal operations, and we expect to continue operating as usual throughout this process.
What are the immediate next steps in the process? How long will the process take?
We have filed a series of requests, known as “First Day,” motions with the Court, in which we expect to receive approval to continue our business operations. These requests are typical in a Chapter 11 case and are expected to be heard by the Court within the first few days of the case.
We expect to emerge from Chapter 11 on an expedited basis and in approximately six months with a much stronger financial position. Once we emerge from the Chapter 11 process, we anticipate that our lenders will be the new owners of Ascend.
Does Ascend have enough liquidity to continue operating through the process?
Yes, Ascend expects to have sufficient liquidity to operate as usual throughout this process. We have received a commitment for $250 million in new debtor-in-possession financing from our lenders that is expected to provide sufficient liquidity to support Ascend’s operations throughout the Chapter 11 process.
How does this announcement impact site guests?
Ascend is operating as usual, and we remain focused as ever on continuing to provide the same site services to our site guests to meet your needs.
How will I be kept informed? Who should I contact if I have additional questions?
We are committed to transparent communications and will continue to provide updates as there is information to share. If you have any questions, please reach out to your usual company contact.
For Customers
How does this announcement impact customers?
Ascend is operating as usual, and we expect no impact to our customers as a result of this announcement. We remain as focused as ever on creating and delivering high quality performance materials for our customers.
Will Ascend continue to offer the same products? Are there any changes to availability?
We are continuing to offer the same products, and we do not anticipate any impact to product availability or contracts. We remain focused as ever on creating and delivering high quality performance materials for our customers. We value our partnership and know how important our products are to you.
Why should I continue doing business with Ascend?
We are continuing to deliver the same critical products to meet your needs, and we do not anticipate any impact to product availability or contracts. A successful balance sheet restructuring will strengthen our business so we can be an even stronger partner for you, and that is exactly what we intend to do.
How does this announcement affect Ascend’s relationship with customers in non-filing entities?
While all of our operations are running entirely as usual, Ascend’s Chapter 11 filing does not include its locations outside of the U.S. In other words, our international subsidiaries are not subject to the bankruptcy court proceedings, and we do not expect this process to have any impact on your relationship with Ascend or how we work together. We are as focused as ever on creating and delivering high quality performance materials for our customers, and we remain committed to our business and to meeting all obligations to you.
For Vendors
How does this announcement impact vendors?
Ascend is operating as usual and intends to continue meeting our go-forward obligations to our vendors. We intend to pay vendors in the normal course for goods and services delivered to Ascend on or after April 21, 2025, the day of our Chapter 11 filing. Outstanding invoices for goods and services delivered prior to our Chapter 11 filing date are considered “pre-petition” claims and will need to be addressed as part of the Chapter 11 process.
How can I ensure I will be paid for goods and services delivered to Ascend?
We have filed certain “First Day” motions with the Court that will allow us to transition into Chapter 11 without disrupting our ordinary course operations, ensuring we are able to fulfill go-forward obligations to our vendors. We intend to pay vendors in the normal course for goods and services delivered to Ascend on or after April 21, 2025, the day of our Chapter 11 filing. This is called the “post-petition” period. Outstanding invoices for goods and services delivered prior to our Chapter 11 filing date are considered “pre-petition” claims and will need to be addressed as part of the Chapter 11 process.
We have received a commitment for $250 million in new debtor-in-possession financing from our lenders that is expected to provide sufficient liquidity to support Ascend’s operations throughout the Chapter 11 process.
Why should I continue to do business with Ascend?
We value our relationship with you and are grateful for your patience as we’ve worked to determine the best path forward for our business. Our ultimate goal is to strengthen our business so we can be an even stronger partner for you, and that is exactly what we intend to do.
We are relying on you to continue providing the goods and services we need under normal operating terms. This will enable us to meet our obligations to our customers throughout this process. We are working diligently to create as much stability for our vendors as possible and apologize for any inconvenience this process may cause. Thank you for your continued support.
How does this announcement affect Ascend’s relationship with vendors in non-filing entities?
While all of our operations are running entirely as usual, Ascend’s Chapter 11 filing does not include its locations outside of the U.S. In other words, our international subsidiaries are not subject to the bankruptcy court proceedings, and we do not expect this process to have any impact on your relationship with Ascend. Our ultimate goal is to strengthen our business so we can be an even stronger partner for you, and that is exactly what we intend to do.
How will I be kept informed? Who should I contact if I have additional questions?
We are committed to transparent communications and will continue to provide updates as there is information to share. If you have any questions, please reach out to your usual company contact. You can also contact our claims agent, Epiq, by calling (888) 890-9917 (for toll-free U.S. calls) or +1 (971) 385-8728 (for tolled international calls, or by visiting https://dm.epiq11.com/Ascend, for details on the court process and claims process.
Contacts
Media
Osama Khalifa
Rachel Chesley / Rose Temple
Claims Agent
Website: https://dm.epiq11.com/Ascend
Toll Free (U.S.& Canada) #: (888) 890-9917
International #: +1 (971) 385-8728