What is Trinseo’s proposed restructuring plan under Chapter 11, and how does it allocate recoveries among creditors?

Trinseo PLC and its affiliates have filed for Chapter 11 bankruptcy with a prepackaged restructuring plan aimed at reducing approximately $2.0 billion in debt. The plan includes new financing, an equity raise, and establishes two distinct collateral silos that determine creditor recoveries based on their position within those silos.

Why is CastleKnight Management LP objecting to Trinseo’s bankruptcy plan?

CastleKnight Management LP, a creditor holding OpCo term loans, is objecting to the plan’s confirmation because it cites low recovery on those loans under the proposed structure.

Trinseo’s Prepackaged Reset: Two Collateral Silos, One Holdout

Jun 1, 2026

Trinseo SA filed for Chapter 11 bankruptcy with a prepackaged restructuring plan to reduce $2.0 billion in debt, despite objections from creditor CastleKnight Management LP regarding recovery rates.

https://chapter11cases.com/

2026-05-13

Trinseo Announces Pre-Packaged Bankruptcy to Cut $2B Debt, Maintain Operations

2026-05-13

Trinseo to restructure debt through Chapter 11 process

2026-05-26

Trinseo Initiates Chapter 11 Restructuring to Reduce Debt

2026-05-26

Trinseo Initiates Chapter 11 Proceedings to Reduce Debt by $2 Billion

2026-05-26

Trinseo PLC Files for Chapter 11 Bankruptcy Amid Dire Financial Straits