Vertex Energy, Inc. Successfully Emerges From Chapter 11 With Renewed Sustainable Capital Structure
Vertex Energy has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy with a significantly improved financial position. The company secured up to $100 million in exit financing, including $40 million initial borrowings, and achieved deleveraging of approximately $320 million of prepetition debt.
Following the restructuring, Vertex will operate as a privately-held company under the ownership of certain lenders, including funds managed by BlackRock Financial Management, Highbridge Capital Management, Whitebox Advisors, and CrowdOut Capital. The company announced leadership changes, with Mark Smith appointed as the new CEO, replacing Benjamin P. Cowart. A new five-member Board of Directors was also established, with Eugene Davis as Chairman.
Vertex Energy ha completato con successo la sua ristrutturazione finanziaria ed è emersa dalla bancarotta ai sensi del Capitolo 11 con una posizione finanziaria significativamente migliorata. L'azienda ha ottenuto fino a 100 milioni di dollari in finanziamenti di uscita, inclusi 40 milioni di dollari di prestiti iniziali, e ha raggiunto un deleveraging di circa 320 milioni di dollari di debito pre-bancario.
Dopo la ristrutturazione, Vertex opererà come una società privata sotto la proprietà di alcuni creditori, tra cui fondi gestiti da BlackRock Financial Management, Highbridge Capital Management, Whitebox Advisors e CrowdOut Capital. L'azienda ha annunciato cambiamenti dirigenziali, con Mark Smith nominato nuovo CEO, in sostituzione di Benjamin P. Cowart. È stato anche costituito un nuovo Consiglio di Amministrazione di cinque membri, con Eugene Davis come Presidente.
Vertex Energy ha completado exitosamente su reestructuración financiera y ha salido de la bancarrota bajo el Capítulo 11 con una posición financiera significativamente mejorada. La compañía aseguró hasta 100 millones de dólares en financiamiento de salida, incluyendo 40 millones de dólares en préstamos iniciales, y logró una reducción de deuda de aproximadamente 320 millones de dólares de deuda previa a la quiebra.
Tras la reestructuración, Vertex operará como una compañía privada bajo la propiedad de ciertos prestamistas, incluyendo fondos gestionados por BlackRock Financial Management, Highbridge Capital Management, Whitebox Advisors y CrowdOut Capital. La compañía anunció cambios en la dirección, con Mark Smith nombrado como el nuevo CEO, reemplazando a Benjamin P. Cowart. También se estableció una nueva Junta Directiva de cinco miembros, con Eugene Davis como Presidente.
Vertex Energy는 재정 구조 조정을 성공적으로 완료하고 제11장 파산에서 벗어나 크게 개선된 재정 상태로 돌아왔습니다. 이 회사는 1억 달러의 퇴출 자금을 확보했으며, 그중 4천만 달러의 초기 대출을 포함하고, 약 3억 2천만 달러의 파산 전 부채를 감소시켰습니다.
구조 조정 후, Vertex는 BlackRock Financial Management, Highbridge Capital Management, Whitebox Advisors 및 CrowdOut Capital이 관리하는 자금을 포함한 특정 대출자들의 소유 하에 사적으로 운영되는 회사로 활동할 것입니다. 이 회사는 Mark Smith를 새로운 CEO로 임명하며 Benjamin P. Cowart를 대체한다고 발표했습니다. 또한 Eugene Davis를 의장으로 하는 5명의 이사로 구성된 새로운 이사회가 설립되었습니다.
Vertex Energy a réussi à finaliser sa restructuration financière et a émergé de la faillite du Chapitre 11 avec une position financière considérablement améliorée. L'entreprise a sécurisé jusqu'à 100 millions de dollars de financement de sortie, incluant 40 millions de dollars de prêts initiaux, et a réalisé une désendettement d'environ 320 millions de dollars de dettes antérieures à la faillite.
Suite à la restructuration, Vertex opérera en tant que société privée sous la propriété de certains créanciers, y compris des fonds gérés par BlackRock Financial Management, Highbridge Capital Management, Whitebox Advisors et CrowdOut Capital. L'entreprise a annoncé des changements de direction, avec Mark Smith nommé nouveau PDG, remplaçant Benjamin P. Cowart. Un nouveau conseil d'administration de cinq membres a également été établi, avec Eugene Davis en tant que président.
Vertex Energy hat erfolgreich seine finanzielle Umstrukturierung abgeschlossen und ist aus dem Chapter 11 Insolvenzverfahren mit einer signifikant verbesserten finanziellen Position hervorgegangen. Das Unternehmen sicherte sich bis zu 100 Millionen Dollar an Ausstiegsfinanzierung, einschließlich 40 Millionen Dollar an anfänglichen Darlehen, und erreichte eine Reduzierung von etwa 320 Millionen Dollar an vor Insolvenz bestehender Schulden.
Nach der Umstrukturierung wird Vertex als privat gehaltenes Unternehmen unter dem Eigentum bestimmter Gläubiger, darunter von BlackRock Financial Management, Highbridge Capital Management, Whitebox Advisors und CrowdOut Capital verwaltete Fonds, operieren. Das Unternehmen gab Änderungen in der Führung bekannt, wobei Mark Smith als neuer CEO ernannt wurde, der Benjamin P. Cowart ersetzt. Ein neuer fünfköpfiger Vorstand wurde ebenfalls eingerichtet, mit Eugene Davis als Vorsitzendem.
- Secured up to $100M in exit financing with $40M initial borrowings
- Deleveraged approximately $320M of prepetition debt
- Strengthened balance sheet and capital structure
- Appointed experienced industry executive Mark Smith as new CEO
- Company delisted and converted to private ownership
- Complete management overhaul indicating previous leadership issues
- Emerges from Chapter 11 as a Privately-Held Company under New Ownership
-
Achieves Greatly Improved Balance Sheet and up to
$100 million - Announces New Leadership to Support Execution of Go-Forward Strategy
- Poised to Produce High-Quality Refined Fuels and Products and Provide Reliable Services
Under the terms of the chapter 11 plan confirmed by the
As a result of its emergence from chapter 11, Vertex will operate as a privately-held company under the ownership of certain of Vertex’s lenders, including funds managed by BlackRock Financial Management, Inc., Highbridge Capital Management, LLC, Whitebox Advisors LLC, and CrowdOut Capital LLC.
New Leadership Team and Board of Directors
On the effective date of the Plan, Benjamin P. Cowart and Chris Carlson concluded their respective tenures as the Company’s Chief Executive Officer and Chief Financial Officer. Simultaneously therewith, Mark Smith was appointed as the Company’s new Chief Executive Officer. Mr. Smith brings more than 40 years of executive leadership and management experience in refining and related businesses. Prior to joining Vertex, Mr. Smith served as the Chief Executive Officer of Philadelphia Energy Solutions Inc. and the President of Western Refining, Inc.
The Company is pleased to welcome a new Board comprised of five directors with significant industry and financial leadership experience: Eugene Davis (Chairman, Director), Mark Smith (CEO, Director), Zachary Viders (Director), Jacob Mercer (Director), and Daniel Hudson (Director).
Eugene Davis, Chairman of the Board, stated, “The Board welcomes Mark to the Vertex leadership team and looks forward to working closely with him to execute on the Company’s strategy and to drive long-term profitable growth. Mark is an exceptional leader with decades of industry and operational expertise. The Board believes that Mark will be a transformative leader for our Company, customers, and other stakeholders.
Mark Smith, CEO of Vertex, stated, “I am honored to join Vertex during this pivotal time for the Company and I look forward to working with the Vertex team to support the Company through a new era of growth and operational excellence. The Company’s swift and successful emergence from chapter 11 is a significant achievement, and as a result, Vertex is in a strong financial position with the flexibility to optimize the value of its assets for all stakeholders.”
Vertex appreciates the strong support that its investors have demonstrated throughout this process, and thanks its customers, employees, partners, and other stakeholders for their unwavering commitment and trust in Vertex. The Company looks forward to continued success as it focuses on executing its strategy, upholding its commitments to safety, and being a good steward in the communities in which it operates.
Kirkland & Ellis LLP served as restructuring counsel, Bracewell LLP served as restructuring co-counsel, Perella Weinberg Partners served as investment banker, and Alvarez & Marsal North America, LLC served as the Chief Restructuring Officer and financial advisor to the Company.
Sidley Austin LLP and Houlihan Lokey served as legal counsel and financial advisor, respectively, to an ad hoc group of term loan lenders.
An overview of the restructuring, the securities issued pursuant to the Plan, and the debt and other agreements entered into in connection with the Plan will be provided in a Form 8-K, which can be viewed on the Company's website or the Securities and Exchange Commission's website at www.sec.gov.
ABOUT VERTEX ENERGY
Vertex is a leading energy transition company that specializes in producing high-quality refined products. The Company’s innovative solutions are designed to enhance the performance of its customers and partners while also prioritizing sustainability, safety, and operational excellence. With a commitment to providing superior products and services, Vertex is dedicated to shaping the future of the energy industry.
FORWARD-LOOKING STATEMENTS
This release may contain “forward-looking statements.” All statements, other than statements of historical facts that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions based on management's views, estimates, beliefs as of the time of these statements regarding future events and results. When used in this release, words such as “will,” “potential,” “believe,” or their negatives or other words that convey the uncertainty of future events or outcomes are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements involve uncertainties and are subject to many risks and variables. Actual future events may differ materially from those expressed in these forward-looking statements as a result of a number of factors. Although the Company believes its forward-looking statements are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (partially or in full) or will prove to have been correct. In light of the above, the events anticipated by the Company may not occur, and, if any of such events do, the Company may not have correctly anticipated timing or the extent of their impact. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. These cautionary statements qualify all forward-looking statements attributable to the Company or persons acting on the Company’s behalf.
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INVESTOR CONTACT
IR@vertexenergy.com
Source: Vertex Energy, Inc.
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