Shares of U.S.-based energy company Vertex Energy (NASDAQ:VTNR) plummeted approximately 56% to $0.16 in premarket trading today following the company's filing for Chapter 11 bankruptcy protection in a Texas court on Tuesday.
As part of its restructuring agreement with lenders, Vertex Energy announced it will explore a potential sale of the company.
To support its operations during the restructuring process, the company is set to receive $80 million in debtor-in-possession financing, ensuring that day-to-day activities continue uninterrupted.
The steep decline in share price adds to a challenging year for Vertex Energy, with the stock down 89.35% year-to-date as of the last close.
The significant drop reflects investor concerns over the company's financial stability and future prospects amid a turbulent energy market.
The Chapter 11 filing will allow Vertex Energy to reorganize its debts while maintaining business operations.
The exploration of a sale suggests the company is seeking strategic alternatives to maximize value for its stakeholders.