Alkegen, a specialty materials manufacturer, voluntarily commenced prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the Northern District of Texas to implement the restructuring support agreement (RSA) that was previously announced on July 20, 2026.
Under the terms of the RSA, Alkegen will eliminate approximately $3.1 billion of total debt and meaningfully improve its capital structure. Alkegen enters this process with the committed support of its key financial partners and has secured $315 million in new money debtor-in-possession (DIP) financing. Upon court approval, the DIP financing will provide the necessary capital to support the business, maintain existing operations and meet commitments to Alkegen’s partners throughout the restructuring process.
“Today’s filing marks an important milestone in implementing our financial restructuring,” Brian Whittman, CEO of Alkegen, said. “We have the support of our financial partners, a strong underlying business and an unwavering focus on serving our customers around the world. Throughout this process, we expect to operate as usual while taking an important step toward emerging with a stronger financial foundation that will enable us to continue investing in innovation, supporting our customers and executing our long-term strategy.”
The company will continue operating in the ordinary course, with no anticipated disruption for employees, customers, suppliers or business partners across global operations. To ensure a seamless transition into the prepackaged Chapter 11 process, Alkegen has filed several customary “first day motions.” Among these customary motions is an “all trade motion,” which seeks authority to continue paying all trade creditors, vendors and suppliers in the ordinary course pursuant to existing terms. Upon court approval, these motions will enable the company to continue its operations and uphold its commitments to employees, vendors and customers. Alkegen expects to complete a quick, efficient court-supervised process in approximately 60 days.
The prepackaged Chapter 11 cases include Alkegen’s U.S.-based operations and certain international entities, including those based in Canada, the United Kingdom, Germany, Luxembourg, the Netherlands and Hong Kong. None of Alkegen’s international entities will conduct local insolvency proceedings in their respective jurisdictions. Business in these countries will continue to be conducted as usual with no impact on the company’s ability to deliver for customers or fulfill commitments to vendors.
Luyang Energy-Saving Materials and its subsidiaries are not part of the U.S.-based restructuring process and will not be directly impacted by the Chapter 11 cases. Luyang will continue to operate in the ordinary course, with no changes to management, operations, employees, customers or supplier relationships. Luyang’s status as a listed company will remain unaffected, and Alkegen will maintain its majority stake following completion of this process, with no ultimate controlling shareholders outside of the company.
Upon emergence, Alkegen expects to have approximately $200 million in available liquidity and the financial flexibility to continue investing across its leading product portfolio. The company is investing approximately $70 million in capital improvements in 2026, with an additional approximately $300 million anticipated through 2030. Upon completion of the restructuring, Alkegen will be owned by a group of leading institutional investors. With a stronger financial foundation, Alkegen will be well-positioned to enhance its leadership in specialty materials and thermal management and filtration solutions, invest in the next generation of its product offerings, and continue serving customers around the world.
Kirkland & Ellis and Gray Reed are serving as legal counsel, Alvarez & Marsal is serving as financial advisor, Centerview Partners is serving as investment banker and C Street Advisory Group is serving as strategic communications advisor to the company. Davis Polk & Wardwell and PJT Partners are serving as advisors to the ad hoc group of lenders.
