TPC Group Business Update

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Dear Neighbors,

At TPC Group, we believe being a good neighbor goes beyond our commitment to environmental stewardship, social responsibility and economic prosperity. We are committed to being transparent in our communications and would like to provide you with an update on our ongoing efforts to strengthen our financial structure.

As you may know, TPC Group has had some unexpected challenges over the last few years. A series of unprecedented events including the COVID-19 pandemic, supply chain issues, commodity price increases, higher energy costs and operational challenges resulting from 2021 Winter Storm Uri, and the explosion at the Port Neches plant in November of 2019 have caused financial strain for the Company. We have been working diligently to address the impacts of these events in close coordination with our financial stakeholders to consider the best path forward for our business and our stakeholders to ensure we strengthen our capital structure and position us to be a stronger, more competitive business, setting us up for long-term success and future growth opportunities.

To that end, today, TPC Group took the next step in our journey to secure a stronger financial future by filing for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code to begin the transformational recapitalization of our business. This process will allow us to expand upon the progress we’ve already made as we work to put TPC Group on the path to sustained, profitable growth and achieve the potential we know our business has with an appropriate underlying financial structure. Additionally, we expect that the post-transaction capital structure will eliminate from the Company’s balance sheet over $950 million of the Company’s approximately $1.3 billion of secured funded debt.

TPC Group is dedicated to continually improving all aspects of our operations and driving our environmental performance to meet or exceed regulatory requirements and industry practice. Throughout our Chapter 11 process, we are committed to providing the highest levels of safety, quality, and compliance.

Our Company’s foundation is strong; we have a more than 75-year operating history as a leader in North America across all our product lines and as the largest independent processor of crude C4. Furthermore, TPC Group provides critical infrastructure and logistics services to petrochemical operators along the Gulf Coast. We are confident that the foundation we are building will enable us to move through this process swiftly and effectively.

Our commitment to community, being a good neighbor, and operating safely and in an environmentally sound manner is unwavering. We will continue to support the many outreach programs in which we are proud to be a part of, and maintain our investment in community initiatives that help the quality of lives in the communities in which our employees live, work and do business.

Thank you for your support throughout this process. We are confident this decisive action will allow us to be an even stronger business moving forward.

Communications & Public Affairs

Quality Products. Dependable Services.
One Allen Center  |  500 Dallas St.|  Houston, Texas 77002

Best Regards,
Sent by Sharon Roberson, EHCMA, on behalf of:
MaryJane Mudd
Executive Director, EHCMA