Philip Services Corp. announced that it has emerged from Chapter 11 bankruptcy protection Dec. 31. The US Bankruptcy Court for the Southern District of Texas confirmed the company's plan earlier.
Pursuant to the plan, sponsored by an entity owned by Carl Icahn, the company received $170 million in financing. As a result, Icahn owns virtually all the shares of the reorganized company.
The Ontario Superior Court of Justice in Toronto, Canada, granted PSC an order facilitating the US Plan of Reorganization by authorizing the sale of substantially all of the assets of the company's two Canadian subsidiaries to two new subsidiaries of the reorganized company.
The new subsidiaries will be known as PSC Industrial Services Canada Inc. and PSC Analytical Services Inc. The company's Canadian entities emerged from Companies' Creditors Arrangement Act on December 31.
"PSC is emerging from this restructuring as a financially sound, formidable competitor in the industrial cleaning, environmental, and metals services markets," stated Mike Ramirez, CFO and senior vice president.
"The company's strengthened balance sheet will afford us the ability to utilize working capital to improve our operating efficiencies, grow our business, and better serve the needs of our clients," Ramirez added.