Chemours shares rally slightly after report from short seller
Chemours is taking exception to a harshly worded report that claimed the company is headed toward bankruptcy.
The report came from Citron Research, a firm that publishes reports related to short selling of troubled stocks.
Click here for a copy of the report.
Chemours was spun off from DuPont Co. about a year ago.
“After 15 years of publishing, Citron can confidently state that Chemours is the most morally and financially bankrupt company that we have ever witnessed,” the report claimed.
The report went on to blend criticism of the environmental stance of DuPont and Chemours in a long-running case in West Virginia. The report also included an analysis of what Citron sees a grim outlook for Chemours’ product lines and massive environmental liabilities.
DuPont has been criticized elsewhere for offloading its environmental liabilities on Chemours.
“Chemours continues to execute on all aspects of its plan by reducing cost, optimizing its portfolio, growing market positions, refocusing investments and enhancing its organization. The company has taken swift and decisive action under this plan and has already delivered significant cost reductions while strengthening its liquidity position,” according to a company response.
“Chemours is making major investments in key growth initiatives, and continues to progress the strategic review of its Chemical Solutions business. The company reaffirms its 2016 outlook of Adjusted EBITDA above the 2015 performance, generating modestly positive free cash flow. This includes the expectation of $200 million of cost savings realized in 2016, the company stated.
As part of that cost-cutting program, Chemours closed an aging titanium dioxide plant in Edgemoor, just outside Wilmington.
The company is now evaluating whether it will keep its headquarters at the former DuPont headquarters complex.
The Delaware Council on Development Finance approved a financial incentives package for the company.
Chemours shares were up modestly in trading on Wednesday Bloomberg reported, after taking a hit earlier in the day when the report was released.
Comments are closed.