Comprehensive Restructuring to Reduce Total Debt by Over $300 Million and Position the Company for Long-Term Growth

"Pre-Packaged" Plan Supported by 100% of Voting Financial Creditors

No Impact on Business Operations

HOUSTON, Dec. 4, 2023 /PRNewswire/ -- North America's largest glass recycler, Strategic Materials, Inc. (the "Company" or "SMI"), announced a comprehensive restructuring to position the business for long-term growth.

SMI and certain of its U.S. domestic subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas (the "Court"). During the restructuring, the Company intends to operate in the ordinary course of business without disruption. The Company's Canadian and Mexican based operating affiliates are not part of the chapter 11 bankruptcy process.

SMI has secured new money commitments of $23 million, subject to Court approval, for a debtor-in-possession (DIP) financing facility from existing lenders to support its business operations. The facility will allow SMI to continue meeting its obligations across the entire enterprise ? including to customers, suppliers, and employees ? while financially restructuring and reorganizing the business, including deleveraging the balance sheet by over $300 million.

The restructuring will enable the business to grow and operate sustainably and continue to deliver high-quality products while maximizing value for all stakeholders. The Company has filed certain customary "First Day" motions with the Court to ensure operations continue without interruption. All employees will continue to receive pay and benefits, and suppliers of goods and services will be paid in the ordinary course.

"We play a critical role for the customers and communities we serve," said Chris Dods, the Chief Executive Officer of Strategic Materials. "The past several years presented significant operational and financial challenges, requiring a comprehensive restructuring of the balance sheet of the Company. We are grateful for the demonstration of confidence in our underlying business, represented by substantial new financing committed from the lender group."

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

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).

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