Radnor-based Phoenix Services, a company providing services to leading, global steel producing companies, recently completed its financial restructuring process and has emerged from its Chapter 11 case after nine months.
“This milestone marks the final step in the Phoenix’s comprehensive restructuring,” Mark Porto, Phoenix Services CEO, said. “As we launch this next phase of the company’s story, I want to express my sincere gratitude to our employees for their unwavering dedication to safety, reliability, and operational excellence at all of our sites. With a deleveraged balance sheet, strengthened customer and lease portfolios and a committed workforce, Phoenix Services is well positioned to realize its long-term growth potential.”
The restructuring efforts included strengthening the company’s portfolio of customer contracts, restructuring its capital lease portfolio, assuming more than 200 contracts with important counterparties, deleveraging its balance sheet by more than $400 million, and preserving more than 1,500 jobs in the United States and internationally.
The company’s lenders, as part of the company’s Chapter 11 plan, provided $45 million in new-money exit financing to support the reorganized company’s operations.
Phoenix Services’ services include the preparation and transportation of metal scraps, raw materials, and finished products, and removal, handling, and processing of molten slag at customer sites.