April 7, 2015 5:33 PM Share with others:

By Braden Kelner / Pittsburgh Post-Gazette

Liberty Tire Recycling Holdco said today that it has completed a restructuring with stakeholders to reduce its outstanding debt by $50 million.

The tire collection and reuse company, with headquarters in the Strip District, said in a news release that it now has additional capital provided by investment advisers such as Third Avenue Management, Redwood Capital Management and Knighthead Capital Management.

Almost all of the companys bondholders agreed to exchange their unsecured notes for a combination of second lien notes and equity in the company, according to the release.

In the third quarter of 2014, lenders halted access to a $75 million revolving credit line after Liberty Tire breached the terms of the loan, according to Standard and Poors. The tire recycling company in December obtained a $10.1 million loan to fund its daily operations before the restructuring.

Liberty Tire, founded in 2000, reclaims tires to be used in products such as mulch, crumb rubber and even fuel. It owns about 30 collection and remediation facilities in the U.S. and Canada, as well as a number of production facilities, including one in Braddock. At the facilities, it reclaims 1.59 billion pounds of rubber from over 141 million tires each year.

Braden Kelner: bkelner@post-gazette.com or 412-263-1969.

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Liberty Tire Recycling completes restructuring