Innovative Chemical Products (ICP), a coatings and adhesives manufacturer backed by PE firm Audax Management, is in advanced negotiations over a restructuring that could result in creditors taking ownership of the company, according to a report Bloomberg citing unnamed people familiar with the situation.
The discussions come as Audax is reportedly preparing to step away from its investment, shifting control of the business toward lenders as financial pressures intensify. The company is working with advisers Piper Sandler and Kirkland & Ellis, while creditor groups are being advised by Akin Gump Strauss Hauer & Feld and are operating under a cooperation agreement to coordinate negotiations.
What was initially expected to be a liability management exercise has evolved into broader restructuring talks, with ICP management having recently presented a revised business plan to lenders as discussions progress. No final agreement has yet been reached.
ICP has been facing weakening performance, particularly in its roofing-related business, alongside the loss of a key customer. The company has also warned of continued earnings pressure into 2026. Its $1 terbnm loan due in 2027 has fallen sharply in value, reflecting rising investor concern over potential default risk.
Credit rating agency S&P Global recently downgraded ICP further into deep speculative territory, citing deteriorating fundamentals and weakness in the Florida housing market, an important end market for the company.
The situation places ICP among a growing number of building materials and construction-related businesses under stress, as higher interest rates and weaker demand continue to pressure the sector. Several peers have also recently sought advisory support as credit conditions tighten and refinancing challenges increase.
