Searles Valley Minerals has formally sought bankruptcy protection using a Chapter 11 process. The company produces industrial minerals and chemicals from operations in California’s Searles Valley region.
Court filings show that two affiliated companies also filed for bankruptcy protection. Filing details hint at operational continuity as the company boards have collectively approved certain financial arrangements.
Searles Valley Minerals Inc. Files for Chapter 11
The company filed its Chapter 11 petition on June 15, 2026. Case filings on PacerMonitor show that two affiliated entities, Trona Railway Company LLC and Searles Domestic Water Company LLC, also made their individual filings.
Searles Valley Minerals is owned by Nirma Limited, an Indian manufacturing company with businesses spanning detergents, soaps, soda ash, and industrial salt.
Approval of Reorganization, DIP Financing, and Cash Collateral Use
Case records show that the company, along with its affiliates, Trona Railway Company LLC and Searles Domestic Water Company LLC, received board approval for a Chapter 11 filing. The boards approved the filings after reviewing the companies’ financial and operational conditions.
This does not imply that the company is shutting down. Searles Valley Minerals Inc. is expected to keep operating during the proceedings. The company has hired Skadden, Arps, Slate, Meagher & Flom as the legal counsel. Pachulski Stang Ziehl & Jones LLP is serving as co-counsel.
Ankura Consulting Group is the financial advisor. Whereas, the records show that Lazard Frères & Co. LLC is acting as the investment banker. Stretto Inc. is offering consulting services related to noticing, claims management, balloting, disbursements, and more.
Court filings indicate that cash-flow constraints have affected the company’s operations. However, to continue regular activities, it has already arranged several emergency financing measures. TATA Chemicals North America agreed to provide $20 million in liquidity support and assist with soda ash supply needed to fulfill customer commitments.
Case records add that the company has also requested for debtor-in-possession or DIP financing.
Highlights from the Petition
As per the corporate ownership statement listed in the case filings, Nirma Limited owns 100% equity interest in Karnavati Holdings, Inc.
Karnavati Holdings, Inc. holds a complete equity interest in the affiliated entity Trona Railway Company LLC.
Case filings add that Searles Valley Minerals Inc. owns 100% equity interest in Searles Domestic Water Company LLC.
Filing details include a consolidated list of the largest unsecured creditors. The list includes the State of California Cap-and-Trade Program, Core Sales LLC, Sisecam Wyoming LLC, Pacific Gas & Electric, and other creditors.
Court filings indicate that funds will be available for distribution to the unsecured creditors.
A summary of the Chapter 11 petition is shared here:
- Filing Date: June 15, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the District of Delaware
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-10966
- Estimated Assets: Between $100,000,001 and $500 million
- Estimated Liabilities: Between $100,000,001 and $500 million
- Estimated Creditors: Between 200 and 999
- Reason for Filing: Restructure business under court supervision
About Searles Valley Minerals Inc.
The company produces industrial minerals and chemicals at its facilities based in Argus, Trona, and Westend. The company extracts mineral-rich brines from beneath Searles Dry Lake, its website states. In addition, it manufactures soda ash, borax, and other specialty minerals. These items are used in glass, electronics, and chemical manufacturing.
The website adds that Searles Valley Minerals serves 50-plus countries. The company’s history dates to the late 1800s, and it has operated under several owners, including American Potash & Chemical, Kerr-McGee, North American Chemical, and IMC Chemicals. It has been a fully owned subsidiary of Nirma Limited for around 18 years.
The bankruptcy filing represents a significant development for a company whose history spans more than a century. While the bankruptcy outlines its financial challenges, court filings indicate that the company intends to maintain operations through restructuring, backed by liquidity measures and proposed debtor-in-possession financing.
