TERRE HAUTE, Ind.—Tire pyrolysis company Pyrolyx 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, on Oct. 28, 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 of the 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, said the statement on Pyrolyx's website.
The recovered carbon black (rCB) production plant in Terre Haute has been shut 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," the Pyrolyx USA director informed investors.
This process, he explained, led to PLX Indiana—owner of the plant and land at Terre Haute—being placed 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."