Envirosource announced a restructuring plan to reduce its debt, increase its financial flexibility and allow it to become privately held. Envirosource, through its principal operation IMS, provides slag processing, metal recovery, materials handling, scrap management and specialty services to the North American steel industry.
According to the proposed restructuring, Envirosource will exchange its notes for a combination of new notes and cash.
The company has entered into an exchange agreement with affiliates of GSC Partners, a private investment,which holds approximately 63 % of the Senior Notes, pursuant to which GSC Partners has agreed to exchange their notes and support the transactions.
The company expects the restructuring to be completed quickly and to significantly reduce the company's debt and interest obligations. John DiLacqua, the president and CEO, said ``We are excited to announce the commencement of our restructuring plan and look forward to the prompt conclusion of these efforts and to a well-capitalized Envirosource.
I believe that this plan isin the best interest of all stakeholders and it reduces substantially the significant debt and debt service obligations that we've had for years. We particularly wish to thank our shareholders, the holders of our notes, our bankers, and our employees for their continuing support and efforts during this process. We also want to assure our customers, employees, suppliers and trade creditors that there will be no interruptions in our service or our payments.''