The Indiana unit of tyre pyrolysis company Pyrolyx A.G. (PLX) has filed for bankruptcy following a failure to raise capital for a major plan to restructure company debt. The plan included the restructuring of around US$30 million in “senior debt” secured against PLX Indiana’s Terre Haute facility and site, and a US$10-million business recapitalisation.
PLX Indiana has been idled since March 23, following the imposition of COVID-19 lockdown measures in Indiana. It will nevertheless continue reviewing “the viability of its entities and operations,” according to an investor update issued by PLX USA Inc. Director, Stephen Roberts.
The statement highlighted that PLX USA “is in regular contact with our largest lenders to try and agree a pathway which would see some, albeit limited, value retained for shareholders.” This includes seeking to dispose of its “tyre shred” business — PTR L.L.C. & PTS L.L.C. — via a trade sale to raise cash to help stabilise PLX USA.