TERRE HAUTE, Ind. — Tire pyrolysis company Pyrolyx A.G. has placed its PLX Indiana unit into bankruptcy and is reviewing "the viability of its entities" following a failure to raise capital for a major restructuring plan.
The bankruptcy filing followed the withdrawal of support by "cornerstone investors" for a plan to restructure company debt, according to an investor update, issued by Stephen Roberts, director, Pyrolyx USA Inc. board of directors.
The plan included the restructuring of around $30 million in "senior debt" secured against PLX Indiana's Terre Haute facility and site, and a $10-million business recapitalization, a statement on Pyrolyx's website said.
The recovered carbon black (rCB) production plant in Terre Haute has been idled since March 23, following the imposition of COVID-19 lockdown measures in Indiana.
The investor's decision left "the company with no option but to review the viability and longevity of its various corporate entities and operations," Mr. Roberts said.
This process led to Pyrolyx having to place PLX Indiana — owner of the plant and land at Terre Haute — into bankruptcy via a Chapter 7 filing.
Pyrolyx USA is still "actively [reviewing] the continued viability of its entities and is in regular contact with our largest lenders to try and agree a pathway which would see some, albeit limited, value retained for shareholders."
This, noted the statement, includes seeking to dispose of its "tire shred" business — PTR L.L.C. & PTS L.L.C. — via a trade sale to raise cash to help "stabilize PLX USA."
Tire Business' sister publication European Rubber Journal has requested information from Pyrolyx headquarters in Munich, Germany, about the status of the company's operations in Europe.