Phoenix Services LLC Emerges from Chapter 11 with over $400 Million Less Debt, New Financing and Enhanced Financial Flexibility

RADNOR, Pa., June 30, 2023 /PRNewswire/ -- Phoenix Services LLC (the "Company" or "Phoenix"), a premier provider of mission-critical services to leading, global steel producing companies, today announced that it has successfully completed its financial restructuring process and has emerged as a reorganized company from its chapter 11 case after only nine months. Phoenix's chapter 11 plan and the transactions contemplated thereunder were supported by the Company's lenders, who provided $45 million in new-money exit financing to support the operations going forward.

Through its successful restructuring efforts, Phoenix has:

• deleveraged its balance sheet by more than $400 million;
• strengthened its portfolio of customer contracts;
• preserved more than 1500 employee positions across the United States and internationally;
• successfully restructured its capital lease portfolio; and
• assumed over 200 contracts with important counterparties.

"This milestone marks the final step in the Phoenix's comprehensive restructuring," said Mark Porto, Chief Executive Officer of Phoenix Services LLC. "As we launch this next phase of the company's story, I want to express my sincere gratitude to our employees for their unwavering dedication to safety, reliability, and operational excellence at all of our sites. With a deleveraged balance sheet, strengthened customer and lease portfolios and a committed workforce, Phoenix Services is well positioned to realize its long-term growth potential."

Phoenix Services LLC was advised by Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A. as its legal advisors, AlixPartners, LLP as its financial advisor, PJT Partners LP as investment bankers and Sitrick And Company as strategic communications advisors.

Gibson, Dunn & Crutcher LLP served as counsel and Evercore served as financial advisor for the ad hoc group of first lien lenders.

For additional information about the cases please visit http://cases.stretto.com/phoenix.

Phoenix Services
Phoenix Services LLC is dedicated to sustainable solutions and maximizing efficiency for the global steel industry with minimal environmental impact. Services include removal, handling, and processing of molten slag at customer sites, as well as preparation and transportation of metal scraps, raw materials, and finished products.

SOURCE Phoenix Services LLC