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Covia Files For Bankruptcy Protection

Covia Holdings Corp. (CVIA) said that the company and certain of its U.S. subsidiaries have voluntarily filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.

Covia said it has taken a major step toward creating a sustainable capital structure by reducing debt and eliminating excess fixed costs by more than $1 billion. The Company has entered into a restructuring support agreement with holders of a majority of its secured debt for a comprehensive financial restructuring of its debt.

The company expects to significantly reduce excess fixed costs, improve operating cash flow and position the Company to better execute its go-forward business strategy through the Chapter 11 reorganization process.

The company said it has about $250 million of cash currently on hand to fund operations and manage reorganization process.

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