Vertex Energy, Inc. (NASDAQ: VTNR), a leading specialty refiner and marketer of high-quality refined products, has entered into a Restructuring Support Agreement (RSA) with unanimous backing from all its term loan lenders. As part of this process, Vertex has initiated Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas, allowing the company to explore strategic options, including a potential sale.
Benjamin P. Cowart, President and CEO of Vertex, expressed gratitude for the continued support of the lenders, emphasizing their confidence in Vertex’s role within the specialty refinery industry. He thanked employees for their dedication during this period and highlighted the importance of maintaining safety and customer satisfaction. “We believe this path provides the best opportunity for Vertex’s long-term success,” Cowart stated.
Seth Bullock, Chief Restructuring Officer from Alvarez & Marsal, added that significant progress has been made with lender collaboration over recent months. He believes the RSA and its milestones will help the company rebuild and improve long-term value by focusing on strengthening its foundation for future growth and stability.
Vertex plans to continue normal business operations while executing a comprehensive restructuring strategy in line with the RSA. To support this process, the term loan lenders have agreed to provide an additional $80 million Debtor-In-Possession financing facility, subject to certain conditions. The company has also submitted a Chapter 11 plan and bidding procedures, with an expected confirmation of the plan by the end of the year.
Kirkland & Ellis is serving as restructuring counsel, Bracewell LLP as co-counsel, Perella Weinberg Partners as investment banker, and Alvarez & Marsal as Chief Restructuring Officer and financial advisor.
Vertex Energy specializes in producing high-quality refined products, with a focus on sustainability, safety, and operational excellence, and remains committed to shaping the future of the energy industry.
