US Titanium dioxide manufacturer Tronox has withdrawn from an asset auction and announced that it has agreed to a reorganisation plan to lift it out of bankruptcy. Tronox has built its restructuring framework around a new debt facility and new equity financing. It has also agreed to establish several environmental legacy trusts and a litigation trust to deal with various environmental liabilities with the US government. The credit agreement for a USD 425 million debtor-in-possession financing facility has been set up with a syndicate of lenders led by Goldman Sachs. The judge in the trial has approved the framework. Tronox first filed for chapter 11 bankruptcy in January, and said in September it would auction off most of its assets, including manufacturing facilities in the Netherlands and the US, and a 50:50 joint venture in Australia, with rival Huntsman the lead bidder or stalking horse – having agreed to a price of USD 415 million with Tronox. The bankruptcy court auction was due to take place on 21 December. Huntsman tried to force Tronox to go through with the auction, but has now withdrawn its request in documents filed with the US bankruptcy court. Under the original purchase agreement, the company will receive a USD 12.5 million break-up fee as well as up to USD 300 million in expenses from Tronox.