Liberty Tire Recycling Holdco LLC has reached a financial restructuring agreement (to be completed within 90 days) with stakeholders to reduce its debts.
Lenders halted access to a US$75 million revolving credit line after Liberty Tire breached the terms of the loan in the third quarter of 2014, according to Standard and Poor’s. Liberty Tire in December obtained a US$10.1 million loan to fund its daily operations.
The terms of the deal announced Thursday weren’t disclosed, but Liberty Tire’s chief financial officer Ron Carlson said in a news release that it will allow the company to invest in its plants and equipment with an eye toward growth.
The restructuring is expected to be completed within 90 days.
Liberty Tire is majority owned by private equity firm American Securities LLC, which typically invests in companies with revenues between $500 million and $2 billion.
The tyre collection and reuse company has its corporate headquarters in the Strip District and a production facility in Braddock.
Liberty Tire, founded in 2000, reclaims tires to be used in products such as mulch, crumb rubber and even fuel. It owns about 30 collection and remediation facilities in the U.S. and Canada, as well as a number of production facilities, according to its website. At the facilities, it reclaims 1.59 billion pounds of rubber from over 141 million tyres each year.