Alkegen has signed a restructuring deal with lenders that will inject the specialty materials maker with new money and slash its debt load by about $3.1 billion, according to a person familiar with the situation.

The prepackaged bankruptcy plan is designed to provide Alkegen with fresh capital while reducing its financial obligations significantly. The agreement with lenders includes new financing commitments that will support operations during the court-supervised process.

Under the terms, the company's existing debt will be cut by roughly $3.1 billion, easing the burden on the specialty materials maker and positioning it for a more sustainable capital structure. The deal reflects confidence from creditors in the business's long-term viability.

The restructuring is expected to be implemented swiftly through a prepackaged Chapter 11 filing, minimizing disruption to customers and employees. Alkegen aims to emerge from the process with a strengthened balance sheet and continued focus on its core markets.