Thu 11/18/2021 22:49 PM
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Relevant Documents:
Voluntary Petition
First Day Declaration
Cash Collateral Motion

NITROcrete LLC, a Fort Collins, Colo.-based technology and services provider to the concrete and construction materials industry, filed for chapter 11 protection today in the Bankruptcy Court for the District of Colorado. The company reports $1 million to $10 million in assets and $10 million to $50 million in liabilities. The debtors are represented by Markus Williams Young & Hunsicker in Denver, Colo. as counsel, Cordes & Company as financial advisor and SSG Advisors as investment banker. BMC Group is the claims agent. The jointly administered case number is 21-15739. The case has been assigned to Judge Kimberley H. Tyson.

According to the debtors’ first day declaration, the company “believes it has a strong opportunity to reorganize or sell as a going concern.” The “short-term, however, presents a challenge,” the debtors say, adding that “Chapter 11 represents the best path for Debtor to survive the off-season, keep its workforce employed, shed certain legacy debts through contract rejection under the Bankruptcy Code, and continue to provide high-quality services to its concrete industry customers.”

Zions Bancorporation, N.A. dba Vectra Bank Colorado is the debtors' senior lender owed $7.2 million. In 2020, the debtors partnered with Mantucket Capital, who acquired a controlling equity stake in the business for $15 million. “Following the disappointing 2020 season, needing additional capital, the Nitro Debtors obtained interim subordinated debt financing from Drew Nelson, the Founder and Executive Chairman of the Nitro Debtors, and several related parties in early 2021 to allow the Nitro Debtors to continue to pay down some bank debt, cover operating expenses and invest in planned growth expansion,” the debtors add.

“Though 2020 saw a decrease in customer demand for concrete cooling due to unprecedented COVID-19-related work stoppages and project delays,” the debtors, together with non-debtor subsidiaries maintained revenue of $12.1 million, gross profit margin of 53.7% and net loss of $4.8 million, and through Sept. 30, the debtors along with non-debtor subsidiaries had revenue of $11.9 million and net loss of $3.3 million.

“Beginning in October 2021, without any definitive proposals for an acquisition, merger or financing, the Debtor began to focus more on restructuring alternatives and a potential sale of the Nitro Debtors in bankruptcy,” the company says.

Reorg First Day will provide a full summary once the first day briefing is complete.
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