SEATTLE (Recycling Monster): Leading North American glass recycler Strategic Materials Inc. (SMI) has filed for Chapter 11 bankruptcy. The company cited high interest rates, rising competition and changing consumer demands for certain glass packaging and products as the reasons that led to the situation.
SMI, along with some of its U.S. domestic subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.
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The company will undergo restructuring of its business operations, which will be supported by $23 million from existing lenders. The bankruptcy process is unlikely to affect its business operations or its employees. All employees will continue to receive pay and benefits. Also, the affiliates of the company based in Canada and Mexico are not part of the bankruptcy process, the company noted.
The comprehensive restructuring plan aims to position the business for long-term growth. The financial restructuring and reorganizing of the business includes deleveraging the balance sheet by over $300 million. The restructuring will enable sustainable operations and maximize value for all stakeholders.
Chris Dods, CEO of the company noted that a comprehensive restructuring of balance sheet has become inevitable due to the operational and financial challenges during the past several years.