MUNICH—Tire pyrolysis company Pyrolyx A.G. has started insolvency proceedings, the company revealed in a statement canceling an extraordinary general meeting scheduled for Jan. 15.
On Dec. 4, 2020, the company filed with the Munich District Court under file number 1507 IN 2125/20 for the opening of insolvency proceedings, the recycled carbon black (rCB) manufacturer said.
"The court-appointed insolvency trustee does not see himself in a position to give its consent to payments in connection with the AGM," it said. "It is therefore impossible… to hold the extraordinary general meeting."
As of Jan. 4, the company had not provided any update to investors about the progress of the insolvency process via its website.
Last November, the tire pyrolysis company placed its Terre Haute, Ind., unit in the U.S. into bankruptcy, adding that it was reviewing "the viability of its entities" following a failure to raise capital for a major restructuring plan.
The bankruptcy filing, on Oct. 28, followed the withdrawal of support by "cornerstone investors" for a plan to restructure company debt.
The rCB production plant in Terre Haute had been shut since March 23, following the imposition of COVID-19 lockdown measures in Indiana.
Pyrolyx previously announced a five-year deal with Continental for the supply of up to 10,000 metric tons of rCB a year to the tire maker's production facilities worldwide. The rCB initially was to have been supplied by both Pyrolyx's plants in Stegelitz, Germany, and the U.S. facility in Terre Haute, with new capacity to be added in eastern Europe in 2021.
The agreement had been expected to absorb more than 3 million end-of-life tires and to reduce annual CO2 emissions by more than 25,000 tons compared to using traditional carbon black.