Texan Glass Recycler Files for Bankruptcy, Hit by Rising Rates

Recycled glass supplier Strategic Materials Inc. has filed for bankruptcy after being squeezed by higher interest rates and increased competition.

The Houston-based company, which is backed by private equity firm Littlejohn & Co., has around $433 million of funded debt liabilities, according to court papers. During the restructuring, the company said it plans to operate without disruption.

Strategic Materials’ funded debt became “significantly more expensive” following the rapid increase in central bank interest rates, squeezing liquidity, Chief Financial Officer Paul Garrissaid in a court filing. At the same time, new entrants to the market and post-pandemic shifts in ...