Strategic Materials Successfully Emerges from Financial Restructuring, Begins Next Phase of Sustainable Leadership and Growth

HOUSTON, Jan. 23, 2024 /PRNewswire/ -- Strategic Materials, Inc. (the "Company" or "SMI"), North America's largest glass recycler, announced today that it has successfully emerged from its restructuring process with a firm financial footing marked by significantly reduced debt and improved liquidity.

"Today marks a major milestone, with a 'right-sized' balance sheet that provides great financial strength and positions us well for future success," said Strategic Materials Chief Executive Officer Chris Dods. "Our business model is built around sustainability, and we are excited that SMI's future has been made fundamentally more sustainable for the benefit of our customers, employees and communities."

Upon emergence, SMI has now reduced total debt by over $300 million with substantial new liquidity injected into the business. In addition to the capital provided to fund the restructuring process, new capital of approximately $60 million will be used to support SMI's operations and future strategic investments. The new capital demonstrates a strong commitment in the go-forward company by the new equity holder group, which is comprised of several global multi-strategy institutional managers with combined billions of dollars under management.

Reorganization efforts received unanimous support from all voting creditors. Most importantly, customers, suppliers, employees and communities were unaffected by the process.

"Today's completed restructuring is a testament to SMI's talented teams, long-term customers and strong business partnerships, and we look forward to strengthening those relationships going forward," said Dods. "SMI now is able to focus even more squarely on delivering industry-leading recycling solutions, investing in the business and positioning for growth while creating sustainable value for all stakeholders."

Additional Information

As expected, the restructuring was completed in an expedited manner following the Chapter 11 filing on Dec. 4, 2023, after the Company reached agreement with a substantial majority of lenders to recapitalize the business via a "pre-packaged" plan of reorganization. 

Court filings and information about the Chapter 11 Cases are available on a separate website (https://cases.ra.kroll.com/SMI) administered by Strategic Material Inc.'s claims agent, Kroll.

Information is also available by calling 844-307-7493 (Toll Free U.S./Canada) or +1 646-651-1183 (Toll).

Moelis & Company, LLC is serving as investment banker, Alvarez & Marsal as restructuring advisor, and Vinson & Elkins LLP and Wachtell, Lipton, Rosen & Katz as legal counsel.

About SMI

With over a 125-year history, SMI is North America's most comprehensive glass recycler, with nearly 50 locations in the United States, Canada, and Mexico. The company continues to be focused on passionate advocacy, operational excellence, and collaborative partnership. SMI is a trusted partner to cleaner, more efficient glass production, providing customers and suppliers with economical and environmentally viable products and solutions for reuse of waste streams. For more information visit www.smi.com 

Media Contact:
Laura Hennemann | 281.638.6469
[email protected]

SOURCE SMI