IRVINE, Calif., March 18, 2021 /PRNewswire/ — CarbonLite Holdings, LLC has retained Force 10 Partners to lead its restructuring effort, following its voluntary bankruptcy filing on March 8, 2021. Force 10 Co-founder Brian Weiss is serving as Chief Restructuring Officer. The Force 10 team is focusing on the post-bankruptcy emergence of CarbonLite, one of the world’s largest suppliers of post-consumer recycled polyethylene terephthalate (rPET), which is then used to produce high-quality food-grade recycled rPET material sold to the world’s largest beverage companies for packaging.
Force 10 was initially retained during the fourth quarter of 2020 to navigate underperformance and insolvency issues surrounding its complicated capital structure, with over $380 million of indebtedness including $240 million of secured indebtedness across three publicly-traded municipal bonds, a term loan, an ABL facility and capital lease obligations. Force 10 is leading CarbonLite’s restructuring efforts through a combination of Section 363 asset sales, a recapitalization of certain business units, and insolvency strategies. Force 10 has also negotiated $60 million of debtor in possession financing to assist with the continuity of business operations.
“Working with management, Force 10’s evaluation of the critical business drivers, operating infrastructure, and competitive landscape are leading to increasing profitability and value,” said Weiss.
Also advising CarbonLite are Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel and Jefferies Financial Group as investment banker. All the company’s professionals are pending customary court-ordered employment. More information on the case can be found here.
Force Ten Partners, LLC, is an advisory firm with deep domain knowledge in financial and operational corporate restructuring, valuation, forensic accounting, and complex litigation support. Force 10 serves middle-market companies as well as their creditors, stakeholders, and professionals by providing turnaround-management services (CRO), financial advisory services, expert witness support, and investment banking and M&A advisory services.