Vertex Energy, Inc ( VTNR ) shares are tumbling lower at a premarket on Wednesday.

On Tuesday, the company inked a Restructuring Support Agreement (RSA) with full backing from its term loan lenders and filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

Notably, the company has filed customary first-day motions and plans to operate normally while pursuing a comprehensive restructuring strategy under the RSA.

To support this process, the Consenting Term Loan Lenders have agreed to provide $80 million in Debtor-In-Possession financing, subject to specific terms and conditions.

The company has also filed a Chapter 11 plan and bidding procedures, aiming to confirm its Chapter 11 plan by the end of the year.

Chief Restructuring Officer, Seth Bullock of Alvarez & Marsal, said, “We have gained significant momentum with the partnership of Vertex’s lenders over the last several months and believe the restructuring support agreement and related milestones will allow the Company to initiate a fresh start and improve long-term value as it singularly concentrates on strengthening its foundation for continued growth and stability.”

As of June 30, 2024, Vertex Energy ( VTNR ) had total cash and cash equivalents of $18.9 million, including $0.1 million in restricted cash, resulting in a net debt position of $284.9 million.

This month, Vertex Energy ( VTNR ) disclosed the departure of Doug Haugh as Chief Commercial Officer (CCO). Joshua Foster is the new CCO, while CEO Benjamin P. Cowart will serve as interim Chief Operating Officer.

Price Action: VTNR shares are down 59.1% at $0.1475 premarket at the last check Wednesday.

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