Vertex Energy Moves to Restructure for Sustainable Growth
Vertex Energy Initiates Restructuring for Future Success
Vertex Energy, Inc. (NASDAQ: VTNR), an innovative leader in the specialty refining of high-quality products, is paving a new path for its capital structure. The company has recently announced the formation of a Restructuring Support Agreement (RSA) that has garnered essential backing from 100% of its term loan lenders. This significant step is designed to facilitate a series of transactions, which may include exploring a potential sale transaction, aimed at achieving a sustainable financial future.
Commitment to Restructuring Process
As part of its commitment to a thorough restructuring journey, Vertex Energy has filed for Chapter 11 in the Bankruptcy Court for the Southern District of Texas. Benjamin P. Cowart, the President and CEO of Vertex, expressed gratitude for the unwavering support from their lenders. Cowart noted the importance of collaboration in reinforcing the company’s pivotal role within the specialty refining sector. This acknowledgment extends to all employees who remain focused on safety and client satisfaction throughout this challenging period.
Strategic Overview and Financial Support
The CEO also mentioned the significant momentum achieved in cooperation with the Company’s lenders over recent months. This partnership is believed to be vital for executing the RSA and its related objectives, setting up Vertex to initiate a refreshing phase aimed at long-term sustainability and growth. According to the arrangements, the lenders have provided Vertex with an additional $80 million in Debtor-In-Possession financing. This funding is crucial for ongoing operations while navigating the complexities of insolvency proceedings.
Operational Continuity during Restructuring
Amidst the restructuring, Vertex plans to maintain ordinary business operations, reflecting a holistic restructuring strategy defined in the RSA. The company also aims to confirm its Chapter 11 plan by the year’s end, showcasing proactive management and foresight during this significant transition.
Legal and Financial Expertise Engaged
Vertex has engaged a stellar team of legal and financial advisors to navigate this complex restructuring landscape. Kirkland & Ellis serves as the restructuring counsel, while Bracewell LLP supports as co-counsel. Perella Weinberg Partners has been retained as the investment banker, and Alvarez & Marsal provides expertise as the Chief Restructuring Officer and financial advisor.
About Vertex Energy
Vertex Energy is committed to being a leader in the energy transition, emphasizing the production of refined products that meet high quality standards. Their innovative methodologies not only aim to improve the performance for stakeholders but also underline sustainability, safety, and operational excellence. As the company actively shapes the landscape of energy, it remains dedicated to ensuring superior product delivery and service quality to its partners.
Frequently Asked Questions
What is the purpose of Vertex Energy's Restructuring Support Agreement?
The RSA aims to facilitate transactions that improve Vertex's capital structure and may include potential sales to secure financial sustainability.
How much financing has Vertex Energy secured for restructuring?
Vertex Energy has secured $80 million in Debtor-In-Possession financing, which is essential for continuing operations during its restructuring process.
Who are Vertex Energy's advisors during the restructuring?
Kirkland & Ellis and Bracewell LLP are providing legal counsel, while Perella Weinberg Partners is the investment banker, and Alvarez & Marsal serves as the Chief Restructuring Officer.
What operational plans does Vertex Energy have during Chapter 11 proceedings?
Vertex plans to operate its business as usual while exploring a comprehensive restructuring strategy underpinned by the RSA’s framework.
What is Vertex Energy's focus in its business model?
Vertex Energy focuses on refining high-quality products, sustainability, and operational excellence in the energy transition space, shaping the future of the industry.
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