Nearly two months after filing for bankruptcy, Strategic Materials has restructured itself, reduced its debt and secured more funding.
The Houston-headquartered glass beneficiation company and 15 affiliated debtors filed for Chapter 11 bankruptcy on Dec. 4, 2023, due to $432 million in debts and interest. Strategic Materials has more than three dozen facilities across 19 states and is a major buyer of recovered post-consumer and post-industrial glass.
Under an agreement approved by a Texas judge, Strategic has reduced its total debt by over $300 million and acquired about $60 million in new capital that will be used to support its operations and future strategic investments.
“The new capital demonstrates a strong commitment in the go-forward company by the new equity holder group, which is comprised of several global multi-strategy institutional managers with combined billions of dollars under management,” a press release noted.
Chris Dods, Strategic CEO, said in a press release that the restructuring “marks a major milestone, with a ‘right-sized’ balance sheet that provides great financial strength and positions us well for future success.”
The reorganization effort “received unanimous support from all voting creditors,” the press release added, and customers and employees were unaffected by the process.
“SMI now is able to focus even more squarely on delivering industry-leading recycling solutions, investing in the business and positioning for growth while creating sustainable value for all stakeholders,” Dods said.
The company did not respond to a request for further comment.
