Liberty Tire Recycling completes restructuring

Pittsburgh-based Liberty Tire Recycling LLC, along with its subsidiaries, has completed a financial restructuring that the company says will allow it to grow its business. Liberty says the restructuring has deleveraged its balance sheet and facilitated the infusion of new capital into the company.

The restructuring was completed March 5, 2015, and has resulted in the company reducing its outstanding debt by $50 million while also reducing its annual cash interest expense, according to Liberty. Liberty Tire now has access to additional capital through loans provided by funds and accounts managed by Third Avenue Management LLC, Redwood Capital Management LLC and Knighthead Capital Management LLC, among others.

Liberty Tire says that with its new capital structure in place it will have the flexibility and liquidity needed to continue to make capital investments to strengthen its business.

“With our restructuring completed, we now have the foundation in place for Liberty to achieve strong and steady growth,” says Bill Fry, Liberty Tire president and CEO. “We appreciate the service of our previous board of directors and look forward to great things with our new equity holders and new board of directors.”

Thomas Womble, Liberty Tire COO, says, “Our completed restructuring provides us greater financial flexibility and stronger growth opportunities. We are excited to forge ahead and are thankful for the ongoing support of our valued partners, suppliers and customers.”

The company provides tire recycling services throughout North America. Liberty estimates that it recycles more than 141 million tires per year, reclaiming about 1.59 billion pounds of rubber.