Vertex Energy
UPDATE 1: Refiner Vertex Energy Files Ch 11 With RSA, Plan Supported by 100% of Term Lenders, $80M DIP Financing; Company Will Pursue ‘Holistic Restructuring,’ Seek Approval of Bidding Procedures
Tue 09/24/2024 22:02 PM
Tue Sep 24, 2024 10:02 PM ET: Specialty refiner Vertex Energy and several affiliates filed chapter 11 in Houston today with a restructuring support agreement and plan of reorganization supported by 100% of term lenders. The term lenders have also agreed to provide $80 million in DIP financing.
According to the company’s press release, the debtors intend to explore “a holistic restructuring strategy pursuant to the terms of the RSA,” including bidding procedures for a possible sale transaction. The debtors expect to emerge from chapter 11 by the end of 2024.
The petition lists $642.8 million in total debt and $772.4 million in total assets as of June 30. The debtors’ capital structure as of March 31 included $433.7 million of secured debt ($169.7 million in inventory financing agreements, $196 million in term loans and $68.1 million in finance leases) and $20.2 million in unsecured debt (including $15.2 million in convertible notes).
The chapter 11 cases will be jointly administered under the case of debtor Vertex Energy (case no. 24-90507). The case has been assigned to Judge Christopher Lopez.
The Reorg docket for the case can be accessed HERE.
The company's capital structure can be found on the Reorg site HERE.
Kirkland & Ellis is bankruptcy counsel, Perella Weinberg Partners is investment banker and Alvarez & Marsal is financial advisor.
A rider attached to debtor Vertex Energy’s petition lists the following affiliated entities as also filing for chapter 11 relief:
The petition lists the following equity holders as holding five percent or more of Vertex Energy’s common stock:
Original Story 6:47 p.m. UTC on Sep. 24, 2024
FILING ALERT: Vertex Energy Files Chapter 11 in the Southern District of Texas
Relevant Document:
Voluntary Petition
Houston-based Vertex Energy Operating LLC filed for chapter 11 protection today in the Bankruptcy Court for the Southern District of Texas. The company reports $500 million to $1 billion in both assets and liabilities. The debtors are represented by Kirkland & Ellis and Bracewell as counsel, Perella Weinberg Partners as investment banker and Alvarez & Marsal as financial advisor. Kurtzman Carson Consultants is the claims agent. Seth R. Bullock is the Chief Restructuring Officer. The petition indicates that additional debtors will file to be jointly administered under the case of Vertex Energy Inc. The Vertex Energy Operating case number is 24-90506.
Resolutions attached to the petition refer to a restructuring support agreement. The resolutions also reference DIP financing with certain of the prepetition lenders and their administrative agent Cantor Fitzgerald Securities.
Vertex Energy Operating's largest unsecured creditors are as follows:
Reorg First Day will provide a full summary once the first day briefing is complete.
According to the company’s press release, the debtors intend to explore “a holistic restructuring strategy pursuant to the terms of the RSA,” including bidding procedures for a possible sale transaction. The debtors expect to emerge from chapter 11 by the end of 2024.
The petition lists $642.8 million in total debt and $772.4 million in total assets as of June 30. The debtors’ capital structure as of March 31 included $433.7 million of secured debt ($169.7 million in inventory financing agreements, $196 million in term loans and $68.1 million in finance leases) and $20.2 million in unsecured debt (including $15.2 million in convertible notes).
The chapter 11 cases will be jointly administered under the case of debtor Vertex Energy (case no. 24-90507). The case has been assigned to Judge Christopher Lopez.
The Reorg docket for the case can be accessed HERE.
The company's capital structure can be found on the Reorg site HERE.
Kirkland & Ellis is bankruptcy counsel, Perella Weinberg Partners is investment banker and Alvarez & Marsal is financial advisor.
A rider attached to debtor Vertex Energy’s petition lists the following affiliated entities as also filing for chapter 11 relief:
- Bango Oil LLC
- Cedar Marine Terminals LP
- Crossroad Carriers L.P.
- Crystal Energy LLC
- H&H Oil L.P.
- HPRM LLC
- Tensile-Heartland Acquisition Corp.
- Tensile-Myrtle Grove Acquisition Corp.
- Vertex Acquisition Sub LLC
- Vertex Energy Operating LLC
- Vertex II GP LLC
- Vertex Marine Fuel Services LLC
- Vertex Merger Sub LLC
- Vertex Recovery Management LLC
- Vertex Recovery L.P.
- Vertex Refining Alabama LLC
- Vertex Refining LA, LLC
- Vertex Refining Myrtle Grove LLC
- Vertex Refining NV, LLC
- Vertex Refining Texas LLC
- Vertex Renewables Alabama LLC
- Vertex Renewables LLC
- Vertex Splitter Corporation
The petition lists the following equity holders as holding five percent or more of Vertex Energy’s common stock:
Original Story 6:47 p.m. UTC on Sep. 24, 2024
FILING ALERT: Vertex Energy Files Chapter 11 in the Southern District of Texas
Relevant Document:
Voluntary Petition
Houston-based Vertex Energy Operating LLC filed for chapter 11 protection today in the Bankruptcy Court for the Southern District of Texas. The company reports $500 million to $1 billion in both assets and liabilities. The debtors are represented by Kirkland & Ellis and Bracewell as counsel, Perella Weinberg Partners as investment banker and Alvarez & Marsal as financial advisor. Kurtzman Carson Consultants is the claims agent. Seth R. Bullock is the Chief Restructuring Officer. The petition indicates that additional debtors will file to be jointly administered under the case of Vertex Energy Inc. The Vertex Energy Operating case number is 24-90506.
Resolutions attached to the petition refer to a restructuring support agreement. The resolutions also reference DIP financing with certain of the prepetition lenders and their administrative agent Cantor Fitzgerald Securities.
Vertex Energy Operating's largest unsecured creditors are as follows:
Reorg First Day will provide a full summary once the first day briefing is complete.
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