Vertex Energy ( (VTNR) ) just unveiled an announcement.
Vertex Energy, Inc. and its affiliates have entered a Restructuring Support Agreement to address their financial challenges, which will be carried out through a chapter 11 plan. This plan includes either a recapitalization of the company’s balance sheet or a sale of its assets. Debtors have secured a $280 million debtor-in-possession financing to maintain operations and facilitate the restructuring process. The agreement also entails the cancellation of existing equity interests, potentially leading to significant losses for equity holders. The Chapter 11 filing has resulted in immediate payment obligations under their debt instruments, though enforcement is stayed by the bankruptcy proceedings. The company has also issued retention bonuses to key executives to maintain stability during the restructuring.
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