Can DuPont Spin Off Its Liabilities?

When DuPont announced plans to spin off its major chemical operations in October 2013, it said the move would create a cash-generating dynamo with the leading market share in most of its businesses. The spinoff would let DuPont focus on higher-value products such as solar-panel materials and genetically modified crop seeds, as well as alternatives to fossil fuels.

The new company, Chemours, created on July 1, inherited 37 active plants globally that produce materials such as titanium dioxide, a pigment that adds opaqueness to paints, and fluorochemicals such as Teflon nonstick coatings. DuPont investors have been given one Chemours share for every five DuPont shares they own. Chemours will owe DuPont a $4 billion dividend for share buybacks, too. Chemours shares, which have been trading since June 19, have fallen 21 percent.