Shares of Rentech (NASDAQ: RTK) are down 46% following the company’s announcement that its board has decided to idle the Wawa facility due to equipment and operational issues that would require additional unbudgeted capital investment, as well as continued uncertainty around profitability on pellets produced at the facility. The company said it expects to complete a safe and orderly idling of the facility in approximately two weeks. After the plant is idled, a small number of workers will maintain the plant so that it can resume operations with minimal resources if there is interest from a third party to invest in or purchase the facility. Rentech anticipates idling the plant will conserve liquidity as it formally explores strategic alternatives for the company as a whole, as well as the plant, including ongoing discussions with third parties. The company also provided an update on other aspects of the business.
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About Rentech, Inc.
Rentech, Inc. (NASDAQ: RTK) owns and operates wood fibre processing and wood pellet production businesses. Rentech offers a full range of integrated wood fibre services for commercial and industrial customers around the world, including wood chipping services, operations, marketing, trading and vessel loading, through its subsidiary, Fulghum Fibres. The company’s New England Wood Pellet subsidiary is a producer of bagged wood pellets for the U.S. heating market. Rentech’s industrial wood pellet facilities are designed to produce wood pellets used as fuel for power generation. For more information, please visit www.rentechinc.com.
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