Chemicals Company Ascend in Talks to Hand Reins to Lenders

Ascend Performance Materials is in discussions with lenders to swap a portion of their debt for equity in a deal that could also hand control of the cash-strapped chemicals business to creditors, according to people with knowledge of the situation.

Existing lenders are in talks to provide a loan to help fund the company’s operations during a potential Chapter 11 process, said the people, who asked not to be identified discussing a private matter. A bankruptcy filing could happen as soon as this month, but no final decision has been made, they said.

Lenders will also see some of their ...