Less than two months after entering bankruptcy protection, plastics recycler Nicos Polymers has emerged. Under an agreement reached, the company has sold its assets to a new company formed by its main creditor, Fifth Street Finance Corp. and Fifth Street Mezzanine Partners II L.P.
The company, located in Nazareth, Pa., operates an 180,000-square-foot facility where it performs post-industrial polymer recycling services. The company, which specializes in PVC (polyvinyl chloride) recycling, processes from 70 million to 100 million pounds of scrap plastics per year.
Kevin Cronin, Nicos CEO, says the company was financially viable on a day-to day basis but was saddled with a sizable long-term debt since 2009, which made it difficult to continue to operate.
Under the arrangement, Fifth Street Finance Corp. has taken a 51 percent stake in the company.
Cronin says that Nicos will continue business as usual. “Not much has changed with the company,” he adds. “We haven’t missed a beat. The new ownership wants the company to grow.”
Following the restructuring, Cronin says Nicos how has “a much healthier balance sheet.”
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