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Plastics Recycler CarbonLite OK'd to Tap Four Bankruptcy Loans

Submitted by jhartgen@abi.org on

Plastics recycler CarbonLite Holdings LLC yesterday secured approval, on an interim basis, of four separate loans totaling $78.5 million to fund its bankruptcy proceedings, Reuters reported. U.S. Bankruptcy Judge John Dorsey signed off on the financing during CarbonLite’s first hearing since filing for chapter 11 protection on Monday. The company, represented by Pachulski Stang Ziehl & Jones, blamed low output at its facilities, high operating expenses and high interest rates on its debt obligations, as well as pandemic-related construction delays at one facility, for its financial strain.