A Massive Service Company Now Declares An Unexpected Bankruptcy

December 7, 2023

A massive service company now declares an unexpected bankruptcy as it seeks to reorganize its financials and lower its debt.

Strategic Materials Inc., North America’s largest glass recycler, has been very careful in presenting its Chapter 11 bankruptcy filing.

“SMI and certain of its U.S. domestic subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas,” the company said in a news release.

“During the restructuring, the company intends to operate in the ordinary course of business without disruption.”

The company also said in the news release that its prepackaged bankruptcy plan is supported by 100% of voting financial creditors

In addition to being the largest recycler of glass in the U.S., SMI also recycles plastic and other materials, reports TheStreet.

“We convert recyclable materials into valuable products, helping industrial manufacturers increase operational efficiency,” the website says.

“Our materials are utilized to create a wide range of products used in daily life, including fiberglass insulation, food and beverage containers, reflective materials, and other consumer and industrial products.”

SMI has secured a whopping $23 million in new money commitments subject to court approval, for a debtor-in-possession financing facility from existing lenders to support its business operations.

The loan will enable Strategic Materials to continue operating normally, which includes paying vendors and employees.

The restructuring plan will lower the company’s debt by more than $300 million if everything goes according to plan.

“We play a critical role for the customers and communities we serve,” said Chief Executive Chris Dods.

“The past several years presented significant operational and financial challenges, requiring a comprehensive restructuring of the balance sheet of the company.”

Also Read: Massive Layoffs in California Now Underway Prior to Holidays

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A Bank of America customer now reports stolen money from a scam where the fraudsters used pressure tactics to trick her.

Barbara, a senior citizen from Orange County, Florida, revealed how she lost her savings in a Bank of America bitcoin scam.

Fraudsters claiming to be Bank of America contacted Barbara with the first call going to her home phone, reports The-Sun.

The call came up as Bank of America (407)-857-7035, which is the number for her local Bank of America finance center, according to the bank’s website.

“She’s telling me how much money they’re trying to get out of the account to the penny,” Barbara explained to news outlet WKMG6.

Following this call, another scammer told her to withdraw cash from her bank account and move it to various Bitcoin accounts.

He emailed her QR codes with the Bank of America logo so she could transfer the money through two cryptocurrency ATMs.

She had no experience in it but was directed to the nearby ATMs.

“‘There’s a place on Colonial Drive,’ he’s directing me now (Colonial Liquor),” she recollected.

Barbara lost $21,000 as a result of the transactions but told the news outlet that despite her lack of experience with bitcoin she was convinced it was the only way to save her money.

The scammers even claimed that the people trying to hack into her account worked at the bank.

“It’s embarrassing and it’s hurtful that it happened but I know other people want to hear my story. It will help someone else,” Barbara tearfully told the interviewer.

Special agent Caroline O’Brien-Buster in charge of investigating such scams told the news outlet: “We just want to bring awareness out to the community.”

“There’s just so many people being victimized by fraudsters and being told to use Bitcoin ATMs.”

O’Brien-Buster noted that these scams can instill a sense of urgency in the victim, pressurizing them to take action.

“They scare you and they say ‘hey, this is the only way that your money is going to be safe,'” she explained.

Also Read: A US Bank is Now Denying Customers Access to Money

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